FA mock exam - 1

The following information is relevant to the preparation of the consolidated financial statements for the year ended 30 June 20X4:

• On 1 January 20X1, the retained earnings of Setter were $157,500 and the fair value of the non-controlling interest was $63,500.

• At the acquisition date, the fair value of land owned by Setter exceeded its carrying amount by $100,000. This land was still owned by Setter at 30 June 20X4.

• During the year ended 30 June 20X4, Poodle sold goods to Setter for $20,000 at a mark-up on cost of 25%. All of the goods remain in the inventory of Setter at the year end. The sale was made on credit and payment had not been made by Setter at 30 June 20X4.

) In relation to the consolidated statement of financial positon of the Poodle group as at 30 June 20X4, calculate the following:

(Property, plant and equipment)

The following information is relevant to the preparation of the consolidated financial statements for the year ended 30 June 20X4:

• On 1 January 20X1, the retained earnings of Setter were $157,500 and the fair value of the non-controlling interest was $63,500.

• At the acquisition date, the fair value of land owned by Setter exceeded its carrying amount by $100,000. This land was still owned by Setter at 30 June 20X4.

• During the year ended 30 June 20X4, Poodle sold goods to Setter for $20,000 at a mark-up on cost of 25%. All of the goods remain in the inventory of Setter at the year end. The sale was made on credit and payment had not been made by Setter at 30 June 20X4.

In relation to the consolidated statement of financial positon of the Poodle group as at 30 June 20X4, calculate the following:

(Inventories)

The following information is relevant to the preparation of the consolidated financial statements for the year ended 30 June 20X4:

• On 1 January 20X1, the retained earnings of Setter were $157,500 and the fair value of the non-controlling interest was $63,500.

• At the acquisition date, the fair value of land owned by Setter exceeded its carrying amount by $100,000. This land was still owned by Setter at 30 June 20X4.

• During the year ended 30 June 20X4, Poodle sold goods to Setter for $20,000 at a mark-up on cost of 25%. All of the goods remain in the inventory of Setter at the year end. The sale was made on credit and payment had not been made by Setter at 30 June 20X4.

In relation to the consolidated statement of financial positon of the Poodle group as at 30 June 20X4, calculate the following:

(Receivables)

The following information is relevant to the preparation of the consolidated financial statements for the year ended 30 June 20X4:

• On 1 January 20X1, the retained earnings of Setter were $157,500 and the fair value of the non-controlling interest was $63,500.

• At the acquisition date, the fair value of land owned by Setter exceeded its carrying amount by $100,000. This land was still owned by Setter at 30 June 20X4.

• During the year ended 30 June 20X4, Poodle sold goods to Setter for $20,000 at a mark-up on cost of 25%. All of the goods remain in the inventory of Setter at the year end. The sale was made on credit and payment had not been made by Setter at 30 June 20X4.

In relation to the consolidated statement of financial positon of the Poodle group as at 30 June 20X4, calculate the following:

(Retained earnings)

The following information is relevant to the preparation of the consolidated financial statements for the year ended 30 June 20X4:

• On 1 January 20X1, the retained earnings of Setter were $157,500 and the fair value of the non-controlling interest was $63,500.

• At the acquisition date, the fair value of land owned by Setter exceeded its carrying amount by $100,000. This land was still owned by Setter at 30 June 20X4.

• During the year ended 30 June 20X4, Poodle sold goods to Setter for $20,000 at a mark-up on cost of 25%. All of the goods remain in the inventory of Setter at the year end. The sale was made on credit and payment had not been made by Setter at 30 June 20X4.

In relation to the consolidated statement of financial positon of the Poodle group as at 30 June 20X4, calculate the following:

(Payables)

The following information is relevant to the preparation of the consolidated financial statements for the year ended 30 June 20X4:

• On 1 January 20X1, the retained earnings of Setter were $157,500 and the fair value of the non-controlling interest was $63,500.

• At the acquisition date, the fair value of land owned by Setter exceeded its carrying amount by $100,000. This land was still owned by Setter at 30 June 20X4.

• During the year ended 30 June 20X4, Poodle sold goods to Setter for $20,000 at a mark-up on cost of 25%. All of the goods remain in the inventory of Setter at the year end. The sale was made on credit and payment had not been made by Setter at 30 June 20X4.

Choose the correct calculation of investments to include in the consolidated statement of financial position.

• $300,000 + $270,000

• $300,000 – $270,000

• $300,000

• none

The following information is relevant to the preparation of the consolidated financial statements for the year ended 30 June 20X4: • On 1 January 20X1, the retained earnings of Setter were $157,500 and the fair value of the non-controlling interest was $63,500. • At the acquisition date, the fair value of land owned by Setter exceeded its carrying amount by $100,000. This land was still owned by Setter at 30 June 20X4. • During the year ended 30 June 20X4, Poodle sold goods to Setter for $20,000 at a mark-up on cost of 25%. All of the goods remain in the inventory of Setter at the year end. The sale was made on credit and payment had not been made by Setter at 30 June 20X4.

Choose the correct formula to calculate goodwill on consolidation for inclusion in the consolidated statement of financial position.

• Fair value of consideration paid Less: fair value of the non-controlling interest at acquisition date Plus: Fair value of net assets at the acquisition date

• Fair value of consideration paid Less: fair value of the non-controlling interest at acquisition date Less: Fair value of net assets at the acquisition date

• Fair value of consideration paid Plus: fair value of the non-controlling interest at acquisition date Less: Fair value of net assets at the acquisition date

• none

The following information is relevant to the preparation of the consolidated financial statements for the year ended 30 June 20X4: • On 1 January 20X1, the retained earnings of Setter were $157,500 and the fair value of the non-controlling interest was $63,500. • At the acquisition date, the fair value of land owned by Setter exceeded its carrying amount by $100,000. This land was still owned by Setter at 30 June 20X4. • During the year ended 30 June 20X4, Poodle sold goods to Setter for $20,000 at a mark-up on cost of 25%. All of the goods remain in the inventory of Setter at the year end. The sale was made on credit and payment had not been made by Setter at 30 June 20X4.

Choose the correct formula to calculate the non-controlling interest for inclusion in the consolidated statement of financial position.

• Fair value of non-controlling interest at acquisition Plus NCI% × change in fair value of net assets between acquisition date and reporting date.

• Fair value of non-controlling interest at acquisition Plus NCI% × fair value of net assets at reporting date.

• Fair value of non-controlling interest at acquisition Plus NCI% × at acquisition date.

• none

The following information is relevant to the preparation of the consolidated financial statements for the year ended 30 June 20X4: • On 1 January 20X1, the retained earnings of Setter were $157,500 and the fair value of the non-controlling interest was $63,500. • At the acquisition date, the fair value of land owned by Setter exceeded its carrying amount by $100,000. This land was still owned by Setter at 30 June 20X4. • During the year ended 30 June 20X4, Poodle sold goods to Setter for $20,000 at a mark-up on cost of 25%. All of the goods remain in the inventory of Setter at the year end. The sale was made on credit and payment had not been made by Setter at 30 June 20X4

State whether each of the following statements are true or false:

1.Goodwill arising on consolidation of a subsidiary is accounted for as a tangible non-current asset.

2.Non-controlling interest is classified as a liability in the consolidated statement of financial position.

• false/false

• true/true

• false/true

• true/false