Pre - Acquisition and Post – Acquisition Profits For Partly Owned Subsidiary

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Question

Boss Plc acquired 90% controlling power in the equity of Client Plc 4 years ago when the reserves of the latter were ₦60million. The fair value of some revalued items of property, plant and equipment of Client Plc. was ₦450million in excess of their book carrying amount at acquisition. The estimated remaining life of these assets is 6 years from acquisition date. These facts have not been reflected in the books of Client Plc till date. The respective statements of financial position of the two entities as at 31^st December, 20v9 are as follows

Required

Prepare the consolidated statement of financial position.

Suggested Solution

For wholly-owned subsidiary, click here

You can also read fair value adjustment here

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