a) Consolidation Account
Aliyat Co. Ltd Consolidation Statement of Financial Position as at 31st July 2019
TZS “000”000” TZS “000”000”
Non-Current Asset
Property Plant and Equipment (758+326+25-5)
 1,104.0
Goodwill (W3)
 136.4
Investment in Associate (W4b)
 116.5
Investments (1,200 + 40 -750 -38 -112)
 340.0
 1,696.9
Current Assets
Inventories (235 +153 -6)
 382.0
Trade Receivable (188 + 134 -2.5)
 319.5
Cash & Bank (100 +36)
 136.0
 837.5
Total Assets
2534.4
Equity
Equity shares
 1,000.0
Other Equity Reserves (W5b)
 209.5
Retained Earnings (W5a)
 829.5
 2,039.0
Non-Controlling Interests
 84.9
 2,123.9
Current liabilities
Trade Payable (161 + 127 -2.5)
 285.5
Contingent Consideration (W6)
 0
Dividend Proposal
 80
 410.5
Taxation (25 +20)
 45
2534.4
[20 ticks @ 0.5 marks = 10 Marks]
W1. Group Structures
i.
Aliyat has 80% (Controlling) equity in Firdaous bought 12 month prior the reporting
Dates
ii.
Aliyat has 30% (Controlling) equity in Yusra bought 12 month prior the reporting Dates
W2. Net Assets of Firdaous
Reporting Dates Acquisition Dates Post Profit
TZS “000”000”
TZS “000”000”
TZS “000”000”
Equity shares
400
400
Other Equity Reserves
30
20
10
Retained Earning
112
132
(20)
Fair value of Equipment
25
25
Dep of Fair value of Equipment
(5)
(5)
Prov. For Unrealized Profit
(6)
(6)
556
577
(21)
W3. Goodwill
TZS “000”000”
Cost of investments
Equity shares by Firdaous
750
Contingent (W6)
38
788
FV of NCI at Acquisition
130
918
Less: Net assets at Acquisition
(577)
Goodwill at acquisition
341
Less: Impairment (341 x 60%)
(204.6)
Goodwill
136.4
W4.(a) Non-Controlling Interests *
TZS “000”000”
FV of NCI at Acquisition
130
Less: Post Acquisition Reserves ( -21 x 0.2)
(4.2)
125.8
Less: Impairment (204.6 x 0.2%)
(40.9)
84.9
W4.(b) Investment in Associate
TZS “000”000”
Cash consideration
112
Post of other Equity Reserves ( 80-75)* 0.3
1.5
Post of Retained Earnings ( 70-60)* 0.3
3
116.5
W 5(a) Retained Earnings
TZS “000”000”
Retained Earnings as per question
977
Post of Retained Earnings ( 70-60)* 0.3
3
Post of Retained Earnings (-31 x 0.8)*
(24.8)
Contingent ( W6)
38
Impairment (204.6 x 0.8%)
(163.7)
829.5
W 5(b) Other Equity reserves
TZS “000”000”
As per question
200
Post of Retained Earnings ( 80-75)* 0.3
1.5
Post of Retained Earnings (10 x 0.8)
8
209.5
W6 Contingent consideration
TZS “000”000”
Agreed amount of contingent consideration 50 million
FV at acquisition (included in goodwill calculation
FV at reporting date ( included in SOFP
Adjustment to Retained earnings as gain
[@ working 0.5 marks = 10 Marks]
38
0.0
38