Consolidated SOFP and SPL
Mars and Snickers
The following are the financial statements relating to Mars, a limited liability company, and its
subsidiary company Snickers.
Statements of financial position as at 31 December 20X2
Mars
Snickers
Snickers
Statements of profit or loss for the year ended 31 December 20X2
Mars
Snickers
Snickers
Additional information:
1. Mars purchased its $1 ordinary shares in Snickers on 1 January 20X0. At that date the
balance on Snickers’ retained earnings was $3 million. The fair value of the noncontrolling interest at the date of acquisition was $14,500,000.
2. During the year ended 31 December 20X2 Mars sold goods which originally cost $56
million to Snickers. Mars invoiced Snickers at cost plus 20%. Snickers still has 40% of
these goods in inventory at 31 December 20X2.
3. Snickers owed Mars $1.5 million at 31 December 20X2 for some of the goods Mars
supplied during the year. (A small tip for you: that is about payables/receivables).
Required:
Prepare consolidated statement of financial position and consolidated statement of profit or
loss for the Mars Group for the year ended 31 December 20X2.
Comments to students:
Take a sheet of paper and make your answer handwritten, then take a picture/scan and
download the picture/scan with your full answer to Moodle for my review. Show me all the
calculations, step-by-step as I show you. Do not use Excel or Word, those files are not
accepted.
I recommend to follow the approach to the consolidated statement of financial position (7
steps) -downloaded file below the Homework 9.
Group structure or goodwill calculation is missing – lost marks.
Forms of the financial statements must be appropriately named including group name, year
end date.