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ASSIGNMENT SEVEN Summarized financial statements for three entities for the year ended 30 September 2019 are provided below: Statements of comprehensive income for the year ended 30 April 2019 Revenue Operating cost Finance costs Accra GHS000 408,100 (180,150) (12,000) Bolga GHS000 240,000 (105,500) (6,500) Cape GHS000 170,350 (74,950) (2,400) Profit before tax Tax 215,950 (65,500) 128,000 (38,000) 93,000 (27,750) Profit for the year Other comprehensive income 150,950 9,550 90,000 5,000 65,250 4,750 Total comprehensive income 160,000 95,000 70,000 Cape The Statement of Financial Position as at 30 April 2019 is as follows: Accra Bolga Non-current asset Property, plant and equipment 596,330 320,370 Investments 485,000 335,000 Current asset 87,320 56,550 1,168,650 711,920 489,800 54,800 544,600 Equity Share capital (GHS 1) Income surplus 100,000 875,400 975,400 150,000 43,250 75,000 525,500 600,500 80,000 31,420 50,000 435,750 485,750 30,000 28,850 Non-current liabilities Current liabilities 1,168,650 711,920 544,600 (1) Accra acquired 80% of the equity shares of Bolga on 1 January 2018 at a cost of GHS GHS350 million. At this time, the income surplus of Bolga was GHS255 million and the fair value of the non-controlling interest was GHS80 million. (2) At 1 May 2018 it was determined that land in the books of Bolga with a carrying value of GHS100 million had a fair value of GHS135 million. (3) Bolga acquired 70% of the equity shares of Cape on 1 May 2019 at a cost of GHS335 million. At this time, the retained profits of Cape were GHS285 million and the fair value of the non-controlling interest was GHS 175 million. (4) At 1 May 2019 it was determined that the plant in the books of Cape had a fair value of GHS 20 million in excess of its carrying value. The plant is being depreciated over its remaining life of 10 years. Depreciation is charged to operating costs. (5) During the year ended 30 April 2019, Accra sold GHS 35 million of goods to Bolga at a margin of 20%. Bolga still held one-fifth of these goods in inventory at the reporting date. (6) It is group policy to measure NCIs at fair value at acquisition. At 30 April 2019 it was determined that no impairment had arisen in respect of the goodwill of Bolga but that the goodwill of Cape had suffered am impairment loss of GHS8 million. Impairment losses are charged to operating costs. No impairment losses had arisen in previous periods. Required: Prepare a statement of comprehensive income for the year ended 30th April 2019 and the statement of financial position as at that date. ASSIGNMENT SEVEN Summarized financial statements for three entities for the year ended 30 September 2019 are provided below: Statements of comprehensive income for the year ended 30 April 2019 Revenue Operating cost Finance costs Accra GHS000 408,100 (180,150) (12,000) Bolga GHS000 240,000 (105,500) (6,500) Cape GHS000 170,350 (74,950) (2,400) Profit before tax Tax 215,950 (65,500) 128,000 (38,000) 93,000 (27,750) Profit for the year Other comprehensive income 150,950 9,550 90,000 5,000 65,250 4,750 Total comprehensive income 160,000 95,000 70,000 Cape The Statement of Financial Position as at 30 April 2019 is as follows: Accra Bolga Non-current asset Property, plant and equipment 596,330 320,370 Investments 485,000 335,000 Current asset 87,320 56,550 1,168,650 711,920 489,800 54,800 544,600 Equity Share capital (GHS 1) Income surplus 100,000 875,400 975,400 150,000 43,250 75,000 525,500 600,500 80,000 31,420 50,000 435,750 485,750 30,000 28,850 Non-current liabilities Current liabilities 1,168,650 711,920 544,600 (1) Accra acquired 80% of the equity shares of Bolga on 1 January 2018 at a cost of GHS GHS350 million. At this time, the income surplus of Bolga was GHS255 million and the fair value of the non-controlling interest was GHS80 million. (2) At 1 May 2018 it was determined that land in the books of Bolga with a carrying value of GHS100 million had a fair value of GHS135 million. (3) Bolga acquired 70% of the equity shares of Cape on 1 May 2019 at a cost of GHS335 million. At this time, the retained profits of Cape were GHS285 million and the fair value of the non-controlling interest was GHS 175 million. (4) At 1 May 2019 it was determined that the plant in the books of Cape had a fair value of GHS 20 million in excess of its carrying value. The plant is being depreciated over its remaining life of 10 years. Depreciation is charged to operating costs. (5) During the year ended 30 April 2019, Accra sold GHS 35 million of goods to Bolga at a margin of 20%. Bolga still held one-fifth of these goods in inventory at the reporting date. (6) It is group policy to measure NCIs at fair value at acquisition. At 30 April 2019 it was determined that no impairment had arisen in respect of the goodwill of Bolga but that the goodwill of Cape had suffered am impairment loss of GHS8 million. Impairment losses are charged to operating costs. No impairment losses had arisen in previous periods. Required: Prepare a statement of comprehensive income for the year ended 30th April 2019 and the statement of financial position as at that date

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