Ashanti and Trailer
Content
Ashanti : Complex (pg 122)
Consolidated statement of profit or loss and other comprehensive income for the year ended 30
Apr 2010
$m
$m
Revenue
As per question (810 + 235 + 71)
1,116.00
Inter company sales elimination (W3)
(15.00)
Revenue from illiquid customer (W5)
(5.00) 1,096.00
Cost of sales (686 + 137 + 42)
Depreciation
(W1)
Inter company purchase elimination (W3)
Unrealised profit (W3)
(865.00)
(2.00)
15.00
(1.00)
Gross profit
(853.00)
243.00
Other income
As per question (31 + 17 + 6)
Gain on sale of Ceram (W2)
Accrual of bond interest (W4)
Distribution costs (30 + 21 + 13)
Administrative expenses
As per question (55+29+6)
Impairment of goodwill
(W2)
Impairment of bond
(W4)
Loss on revaluation of PPE
(W6)
Holiday pay accrual
(W7)
Impairment of trade receivable
(W5)
Finance costs (8 + 6 + 4)
Share of profits of associate (W2)
Profit before tax
Income tax expense (21 + 23 + 5)
Profit for the year
54.00
6.80
1.67
(90.00)
(2.20)
(13.98)
(1.60)
(0.21)
(3.00)
Other comprehensive income for the year, net of tax:
Fair value gain - Available-for-sale financial assets (20+9+3-3 w2 + 0.6 w4)
Share of associate available-for-sale financial assets (W2)
Gains on property revaluation (12+6 + 1.6 w6)
Actuarial losses on defined benefit plan
Other comprehensive income for the year, net of tax
Total comprehensive income and expense for year
62.47
(64.00)
(110.99)
(18.00)
2.10
114.58
(49.00)
65.58
29.60
0.90
19.60
(14.00)
36.10
101.68
15
Profit/loss attributable to:
Owners of the parent
Non-controlling interest
Bochem (36 x 30%)
Ceram (7 x 44%)
$m
51.70
10.8
3.08
13.88
65.58
Total comprehensive income attributable to:
Owners of the parent
Non-controlling interest
From profit
13.88
Bochem (15 x 30%)
4.50
Ceram (3 x 44%)
1.32
$m
81.98
19.70
101.68
Note : the income attributable to NCI might be complex and time consuming, you may choose not to
perform this part. In this question, calculating the income attributable to NCI worth 3 marks.
Trailer : Complex (pg 123)
Workings ($m)
Group structure
Trailer
60%
Park
14%
70%
Effective ownership
Park
T-D
60%
- InD
-
Caller
14%
42%
NCI
44%
40%
Caller
1) Investment in Park
Goodwill
Consideration transferred
Non controlling interests (40% x 1,950)
Fair value of net assets
1,250.00
780.00
(1,950.00)
80.00
Fair value adjustements
Fair value of net assets
Book value
Share capital
Retained earnings
OCE
Land
1,950.00
(1,210.00)
(650.00)
(55.00)
35.00
16
2) Investment in Caller
Goodwill
Consideration transferred
By Trailer
By Park
NCI (44% x 1,150)
(-) Direct NCI (40% x 1,270)
280.00
1,270.00
506.00
(508.00)
Fair value of net assets
(1,150.00)
398.00
Fair value adjustment
Fair value of net assets
Book value
Share cap
RE
OCE
Land
1,150.00
(800.00)
(240.00)
(70.00)
40.00
Dr RE (T) 310 - 280
Cr Inv in Caller
30.00
30.00
3) Impairment
Carrying amount of net assets (Park)
At year end
Fair value adjustment
Goodwill (80 / 60%)
2,220.00
35.00
133.33
2,388.33
2,088.00
300.33
Recoverable amount
Impairment loss
Only recognise (300.33 - 53.33 NCI)
Attributable only to Trailer
Share by Trailer and NCI
247.00
(80.00)
167.00
17
4) Loan given
Present value of loan given (1 June 2012)
Year
1
2
3
Cashflow
1.50
1.50
51.50
DF at 6%
0.9434
0.8900
0.8396
Present value
1.42
1.33
43.24
46.00
Start
Interest Interest
Income received
46.00
2.80
(1.50)
End
47.30
Reported
Adjustement
Dr RE (T)
Cr Financial asset
48.50
1.20
1.20
1.20
5) Office
1 June 2011
Cost
Depreciation (30 years)
Before revaluation
Loss (bal fig)
31 May 2012
Revalued amount
Depreciation (29 years)
Before revaluation
Gain (bal fig)
31 May 2013
Revalued amount
90.00
(3.00)
87.00
(12.00)
75.00
(2.60)
72.40
32.60
105.00
Dr PPE
32.60
Cr RE (T) (12 - (3 - 2.6))
Cr OCE (T)
11.60
21.00
6) Provision
First plan provision can be recognised as there are detailed plan and
those affected are informed. The direct cost of $14m is recognised, not the
retraining cost of $4m.
Second plan cannot be provided due no no announcement.
18
Cr bank 50
Dr FA 46
Dr Donation 4
7) Pension plan
Plan asset
Bal b/f
Interest 5%
Contribution
Benefit paid
Retun on plan asset
Bal c/f
OCI
PL
Plan liability
Bal b/f
Interest unwinding 5%
Current service costs
Benefit paid
Actuarial loss
Bal c/f
28.00
1.40
2.00
(3.00)
0.60
29.00
-0.6+5.5
-1.4+1.5+1
Dr OCE (T)
Dr RE (T)
Cr Net pension plan
NCL
4.90
1.10
6.00
8) Group retained earnings as at year end
Trailer
(-) Caller investment (W2)
(-) goodwill impairment (W3)
(-) loan remeasurement (W4)
(+) Revaluation gain (W5)
(-) provision (W6)
(-) pension (W7)
1,240.00
(30.00)
(80.00)
(1.20)
11.60
(14.00)
(1.10)
Park post (930 - 650 - 167 (W3)) x 60%
67.80
Caller post (350 - 240) x 56%
61.60
1,254.70
9) Group OCE as at year end
Trailer
(+) revaluation gain (W5)
(-) pension (W7)
125.00
21.00
(4.90)
Park post (80 - 55) x 60%
15.00
Caller post (95 - 70) x 56%
14.00
170.10
19
30.00
1.50
1.00
(3.00)
5.50
35.00
10) Non controlling interest as at year end
Park
At acquisition (W1)
Share of Park post
RE (930 - 650 - 167 (W3)) x 40%
OCE (80 - 55) x 40%
780.00
45.20
10.00
Caller
At acquisition (W2)
(-) direct NCI (W2)
Share of Caller post
RE (350 - 240) x 44%
OCE (95 - 70) x 44%
506.00
(508.00)
48.40
11.00
892.60
20
Answer
Trailer plc
Consolidated Statement of Financial Position at 31 May 2013
Assets:
Non-current assets:
Property, plant and equipment
(1,440 + 1,100 + 1,300 + 35 w1 + 40 w2 - 167 w3 + 32.6)
Goodwill (W2)
Financial assets (320 + 21 + 141 -1.2 w4)
$m
3,780.6
Current assets (895 + 681 + 150)
398.0
480.8
4,659.4
1,726
Total assets
6,385.4
Equity and liabilities
Equity attributable to owners of parent
Share capital
Retained earnings (W8)
Other components of equity (W9)
Non-controlling interest (W10)
Total equity
1,750.0
1,254.7
170.1
3,174.8
892.6
4,067.4
Non-current liabilities (985 + 765 + 150 + 6 w7)
Current liabilities (115 + 87 + 196 + 14 w6)
1,906.0
412.0
6,385.4
Total equity and liabilities
21
Consolidated statement of profit or loss and other comprehensive income for the year ended 30
Apr 2010
$m
$m
Revenue
As per question (810 + 235 + 71)
1,116.00
Inter company sales elimination (W3)
(15.00)
Revenue from illiquid customer (W5)
(5.00) 1,096.00
Cost of sales (686 + 137 + 42)
Depreciation
(W1)
Inter company purchase elimination (W3)
Unrealised profit (W3)
(865.00)
(2.00)
15.00
(1.00)
Gross profit
(853.00)
243.00
Other income
As per question (31 + 17 + 6)
Gain on sale of Ceram (W2)
Accrual of bond interest (W4)
Distribution costs (30 + 21 + 13)
Administrative expenses
As per question (55+29+6)
Impairment of goodwill
(W2)
Impairment of bond
(W4)
Loss on revaluation of PPE
(W6)
Holiday pay accrual
(W7)
Impairment of trade receivable
(W5)
Finance costs (8 + 6 + 4)
Share of profits of associate (W2)
Profit before tax
Income tax expense (21 + 23 + 5)
Profit for the year
54.00
6.80
1.67
(90.00)
(2.20)
(13.98)
(1.60)
(0.21)
(3.00)
Other comprehensive income for the year, net of tax:
Fair value gain - Available-for-sale financial assets (20+9+3-3 w2 + 0.6 w4)
Share of associate available-for-sale financial assets (W2)
Gains on property revaluation (12+6 + 1.6 w6)
Actuarial losses on defined benefit plan
Other comprehensive income for the year, net of tax
Total comprehensive income and expense for year
62.47
(64.00)
(110.99)
(18.00)
2.10
114.58
(49.00)
65.58
29.60
0.90
19.60
(14.00)
36.10
101.68
15
Profit/loss attributable to:
Owners of the parent
Non-controlling interest
Bochem (36 x 30%)
Ceram (7 x 44%)
$m
51.70
10.8
3.08
13.88
65.58
Total comprehensive income attributable to:
Owners of the parent
Non-controlling interest
From profit
13.88
Bochem (15 x 30%)
4.50
Ceram (3 x 44%)
1.32
$m
81.98
19.70
101.68
Note : the income attributable to NCI might be complex and time consuming, you may choose not to
perform this part. In this question, calculating the income attributable to NCI worth 3 marks.
Trailer : Complex (pg 123)
Workings ($m)
Group structure
Trailer
60%
Park
14%
70%
Effective ownership
Park
T-D
60%
- InD
-
Caller
14%
42%
NCI
44%
40%
Caller
1) Investment in Park
Goodwill
Consideration transferred
Non controlling interests (40% x 1,950)
Fair value of net assets
1,250.00
780.00
(1,950.00)
80.00
Fair value adjustements
Fair value of net assets
Book value
Share capital
Retained earnings
OCE
Land
1,950.00
(1,210.00)
(650.00)
(55.00)
35.00
16
2) Investment in Caller
Goodwill
Consideration transferred
By Trailer
By Park
NCI (44% x 1,150)
(-) Direct NCI (40% x 1,270)
280.00
1,270.00
506.00
(508.00)
Fair value of net assets
(1,150.00)
398.00
Fair value adjustment
Fair value of net assets
Book value
Share cap
RE
OCE
Land
1,150.00
(800.00)
(240.00)
(70.00)
40.00
Dr RE (T) 310 - 280
Cr Inv in Caller
30.00
30.00
3) Impairment
Carrying amount of net assets (Park)
At year end
Fair value adjustment
Goodwill (80 / 60%)
2,220.00
35.00
133.33
2,388.33
2,088.00
300.33
Recoverable amount
Impairment loss
Only recognise (300.33 - 53.33 NCI)
Attributable only to Trailer
Share by Trailer and NCI
247.00
(80.00)
167.00
17
4) Loan given
Present value of loan given (1 June 2012)
Year
1
2
3
Cashflow
1.50
1.50
51.50
DF at 6%
0.9434
0.8900
0.8396
Present value
1.42
1.33
43.24
46.00
Start
Interest Interest
Income received
46.00
2.80
(1.50)
End
47.30
Reported
Adjustement
Dr RE (T)
Cr Financial asset
48.50
1.20
1.20
1.20
5) Office
1 June 2011
Cost
Depreciation (30 years)
Before revaluation
Loss (bal fig)
31 May 2012
Revalued amount
Depreciation (29 years)
Before revaluation
Gain (bal fig)
31 May 2013
Revalued amount
90.00
(3.00)
87.00
(12.00)
75.00
(2.60)
72.40
32.60
105.00
Dr PPE
32.60
Cr RE (T) (12 - (3 - 2.6))
Cr OCE (T)
11.60
21.00
6) Provision
First plan provision can be recognised as there are detailed plan and
those affected are informed. The direct cost of $14m is recognised, not the
retraining cost of $4m.
Second plan cannot be provided due no no announcement.
18
Cr bank 50
Dr FA 46
Dr Donation 4
7) Pension plan
Plan asset
Bal b/f
Interest 5%
Contribution
Benefit paid
Retun on plan asset
Bal c/f
OCI
PL
Plan liability
Bal b/f
Interest unwinding 5%
Current service costs
Benefit paid
Actuarial loss
Bal c/f
28.00
1.40
2.00
(3.00)
0.60
29.00
-0.6+5.5
-1.4+1.5+1
Dr OCE (T)
Dr RE (T)
Cr Net pension plan
NCL
4.90
1.10
6.00
8) Group retained earnings as at year end
Trailer
(-) Caller investment (W2)
(-) goodwill impairment (W3)
(-) loan remeasurement (W4)
(+) Revaluation gain (W5)
(-) provision (W6)
(-) pension (W7)
1,240.00
(30.00)
(80.00)
(1.20)
11.60
(14.00)
(1.10)
Park post (930 - 650 - 167 (W3)) x 60%
67.80
Caller post (350 - 240) x 56%
61.60
1,254.70
9) Group OCE as at year end
Trailer
(+) revaluation gain (W5)
(-) pension (W7)
125.00
21.00
(4.90)
Park post (80 - 55) x 60%
15.00
Caller post (95 - 70) x 56%
14.00
170.10
19
30.00
1.50
1.00
(3.00)
5.50
35.00
10) Non controlling interest as at year end
Park
At acquisition (W1)
Share of Park post
RE (930 - 650 - 167 (W3)) x 40%
OCE (80 - 55) x 40%
780.00
45.20
10.00
Caller
At acquisition (W2)
(-) direct NCI (W2)
Share of Caller post
RE (350 - 240) x 44%
OCE (95 - 70) x 44%
506.00
(508.00)
48.40
11.00
892.60
20
Answer
Trailer plc
Consolidated Statement of Financial Position at 31 May 2013
Assets:
Non-current assets:
Property, plant and equipment
(1,440 + 1,100 + 1,300 + 35 w1 + 40 w2 - 167 w3 + 32.6)
Goodwill (W2)
Financial assets (320 + 21 + 141 -1.2 w4)
$m
3,780.6
Current assets (895 + 681 + 150)
398.0
480.8
4,659.4
1,726
Total assets
6,385.4
Equity and liabilities
Equity attributable to owners of parent
Share capital
Retained earnings (W8)
Other components of equity (W9)
Non-controlling interest (W10)
Total equity
1,750.0
1,254.7
170.1
3,174.8
892.6
4,067.4
Non-current liabilities (985 + 765 + 150 + 6 w7)
Current liabilities (115 + 87 + 196 + 14 w6)
1,906.0
412.0
6,385.4
Total equity and liabilities
21
