My orders
How it works
Examples
Reviews
Blog
Homework Answers
Submit
Sign in
How it works
Examples
Reviews
Homework answers
Blog
Contact us
Submit
Fill in the order form to get the price
Subject
Select Subject
Programming & Computer Science
Math
Engineering
Economics
Physics
Other
Category
Microeconomics
Finance
Accounting
Macroeconomics
Economics of Enterprise
Other
Deadline
Timezone:
Title
*
Task
*
{"ops":[{"insert":"On 1 January 2020, Yunza Co acquired 75% of Lato Co\u2019s equity shares by means of a share exchange of two\u00a0\nshares in Yunza Co for every three Lato Co shares acquired. On that date, further consideration was also\u00a0\nissued to the shareholders of Lato Co in the form of a K100 8% loan note for every 100 shares acquired in\u00a0\nLato Co. None of the purchase consideration, nor the outstanding interest on the loan notes at 31 March 2020,\u00a0\nhas yet been recorded by Yunza Co. At the date of acquisition, the share price of Yunza Co and Lato Co is\u00a0\nK3\u00b720 and K1\u00b780 respectively.\nThe summarised statements of financial position of the two companies as at 31 March 2020 are:\nYunza Co Lato Co\nK\u2019000 K\u2019000\nAssets\nNon-current assets\nProperty, plant and equipment (note (i)) 75,200 31,500\nInvestment in Zed Co at 1 April 2019 (note (iv)) 4,500 \u2013\n\u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\n79,700 31,500\nCurrent assets\nInventory (note (iii)) 19,400 18,800\nTrade receivables (note (iii)) 14,700 12,500\nBank 1,200 600\n\u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\n35,300 31,900\nTotal assets\n\u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\n115,000 63,400\n\u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\nEquity and liabilities\nEquity\nEquity shares of K1 each 50,000 20,000\nRetained earnings \u2013 at 1 April 2019 20,000 19,000\n\u2013 for year ended 31 March 2020 16,000 8,000\n\u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\n86,000 47,000\nNon-current liabilities\n8% loan notes 5,000 nil\nCurrent liabilities (note (iii)) 24,000 16,400\n\u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\n29,000 16,400\nTotal equity and liabilities\n\u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\n115,000 63,400\n\u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\nThe following information is relevant:\n(i) At the date of acquisition, the fair values of Lato Co\u2019s assets were equal to their carrying amounts. However, Lato Co\u00a0\noperates a mine which requires to be decommissioned in five years\u2019 time. No provision has been made for these\u00a0\ndecommissioning costs by Lato Co. The present value (discounted at 8%) of the decommissioning is estimated at\u00a0\nK4m and will be paid five years from the date of acquisition (the end of the mine\u2019s life).\n(ii) Yunza Co\u2019s policy is to value the non-controlling interest at fair value at the date of acquisition. Lato Co\u2019s\u00a0\nshare price at that date can be deemed to be representative of the fair value of the shares held by the\u00a0\nnon-controlling interest.\n(iii) The inventory of Lato Co includes goods bought from Yunza Co for K2\u00b71m. Yunza Co applies a consistent\u00a0\nmark-up on cost of 40% when arriving at its selling prices.\nOn 28 March 2020, Yunza Co despatched goods to Lato Co with a selling price of K700,000. These were\u00a0\nnot received by Lato Co until after the year end and so have not been included in the above inventory at\u00a0\n31 March 2020.\nAt 31 March 2020, Yunza Co\u2019s records showed a receivable due from Lato Co of K3m, this differed to the\u00a0\nequivalent payable in Lato Co\u2019s records due to the goods in transit.2\nThe intra-group reconciliation should be achieved by assuming that Lato Co had received the goods in\u00a0\ntransit before the year end.\n(iv) The investment in Zed Co represents 30% of its voting share capital and Yunza Co uses equity\u00a0\naccounting to account for this investment. Zed Co\u2019s profit for the year ended 31 March 2020 was K6m and\u00a0\nZed Co paid total dividends during the year ended 31 March 2020 of K2m. Yunza Co has recorded its\u00a0\nshare of the dividend received from Zed Co in investment income (and cash).\n(v) All profits and losses accrued evenly throughout the year.\n(vi) There were no impairment losses within the group for the year ended 31 March 2020.\nRequired:\nPrepare the consolidated statement of financial position for Yunza Co as at 31 March 2020\n"}]}
I need basic explanations
Special Requirements
Upload files (if required)
Drop files here to upload
Add files...
Account info
Already have an account?
Create an account
Name
*
E-mail
*
Password
*
The password must be at least 6 characters.
I agree with
terms & conditions
Create account & Place an order
Please fix the following input errors:
dummy