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SUBJECT 2: HARDEN AND SOLDER Harden acquired 800,000 of Solder's $1 equity shares on 1 October 20xo for $2.5 million. One year later, on 1 October 20X1, Harden acquired 200,000 $1 equity shares in Active for $800,000. The statements of financial positions of the three entities at 30 September 20x2 are shown below: Harden Solder Active $000 5000 $000 $00D $000 $000 Non-current assets Property, plant and 3,980 2,300 1,340 equipment Patents 250 420 Investments - in Solder 2.500 - in Active -others FV 200 60 800 150 3,450 7,680 2,920 1,400 Current assets Inventories Trade receivables Bank 570 420 400 380 150 300 400 120 990 930 820 8,670 3,850 2,220 Total assets Equity and liabilities Equity shares of Si each Reserves: Share premium Retained earnings 2,000 1,000 500 500 1,000 4,500 1,900 100 1.200 7,500 3,400 1,800 200 80 Non-current liabilities Deferred tax Current liabilities Trade payables Taxation Overdraft 450 750 140 BD 280 60 970 450 340 2,220 Total equity and liabilities 8,670 3,850 The following information is relevant: The balances of the retained earnings of the three entities were: Harden Solder Active $000 $000 $000 At 1 October 20X0 2,000 1,200 500 At 1 October 20x1 3,000 1,500 800 (ii) At the date of its acquisition the fair values of Solder's net assets were equal to their book values with the exception of a plot of land that had a fair value of $200,000 in excess of its book value. C Goodwill is accounted for using the full goodwill method. At the date of acquisition, the fair value of the non-controlling interest in Solder was $600,000 (IV) On 26 September 20x2, Harden processed an invoice for $50,000 in respect of an agreed allocation of central overhead expenses to Solder. At 30 September 20X2, Solder had not accounted for this transaction. Prior to this the current accounts between the two entities had been agreed at Solder owing $70,000 to Harden (included in trade payables and trade receivables respectively Required: Prepare the consolidated statement of financial position of Harden as at 30 September 20x2. SUBJECT 2: HARDEN AND SOLDER Harden acquired 800,000 of Solder's $1 equity shares on 1 October 20xo for $2.5 million. One year later, on 1 October 20X1, Harden acquired 200,000 $1 equity shares in Active for $800,000. The statements of financial positions of the three entities at 30 September 20x2 are shown below: Harden Solder Active $000 5000 $000 $00D $000 $000 Non-current assets Property, plant and 3,980 2,300 1,340 equipment Patents 250 420 Investments - in Solder 2.500 - in Active -others FV 200 60 800 150 3,450 7,680 2,920 1,400 Current assets Inventories Trade receivables Bank 570 420 400 380 150 300 400 120 990 930 820 8,670 3,850 2,220 Total assets Equity and liabilities Equity shares of Si each Reserves: Share premium Retained earnings 2,000 1,000 500 500 1,000 4,500 1,900 100 1.200 7,500 3,400 1,800 200 80 Non-current liabilities Deferred tax Current liabilities Trade payables Taxation Overdraft 450 750 140 BD 280 60 970 450 340 2,220 Total equity and liabilities 8,670 3,850 The following information is relevant: The balances of the retained earnings of the three entities were: Harden Solder Active $000 $000 $000 At 1 October 20X0 2,000 1,200 500 At 1 October 20x1 3,000 1,500 800 (ii) At the date of its acquisition the fair values of Solder's net assets were equal to their book values with the exception of a plot of land that had a fair value of $200,000 in excess of its book value. C Goodwill is accounted for using the full goodwill method. At the date of acquisition, the fair value of the non-controlling interest in Solder was $600,000 (IV) On 26 September 20x2, Harden processed an invoice for $50,000 in respect of an agreed allocation of central overhead expenses to Solder. At 30 September 20X2, Solder had not accounted for this transaction. Prior to this the current accounts between the two entities had been agreed at Solder owing $70,000 to Harden (included in trade payables and trade receivables respectively Required: Prepare the consolidated statement of financial position of Harden as at 30 September 20x2

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