Consolidation

ASSIGNMENT CONSOLIDATION WORKSHEET & FINANCIAL STATEMENTS On 1 July 2007, Kwok Ltd acquired exclusively(a) the sh ars of Chu Ltd. additional information: a) At 1 July 2007, all recognisable assets and liabilities of Chu Ltd were put down at handsome reputes except for inventory, and engraft and machinery. The clear evaluate of inventory was $1,000 greater than its carrying amount. This inventory was all exchange to external parties in the year cultivation 30 June 2009. At acquisition date, Chu Ltd had plant & machinery which had a carrying amount of 15,000 and comely value of 16,000. The original cost of this plant and machinery was $17,000. This plant and machinery, which had a make headway 5 year life at acquisition date, was interchange on 1 January 2009. At 1 July 2007, Chu Ltd had an unrecorded transparent with an indefinite useful life. On that date, Kwok Ltd thrifty the fair value of the evident at $8 000. By 30 June 2009, it was assessed that $2,000 of the patent was non recoverable. At 1 July 2007, Chu Ltd had not recorded a indebtedness relating to a guarantee that was considered to bugger off a fair value of $7,000. An amount of $5 000 was paid by Chu Ltd on 26th June 2009 in part defrayal of this liability. The balance of this liability was still considered to be $2,000 at 30 June 2009. At 1 July 2007, Chu Ltd had not recorded any goodwill.

paygrade adjustments are make on consolidation and, on recognition of a assembly line combination valuation reserve, a transfer is made to retained earnings on consolidation. b) During the 2007-2008 year, Chu Ltd transfer red $5,000 to its everyday Reserve from pe! lfs realise prior to acquisition date. c) For the year ending 30 June 2008, the profit after tax for Chu Ltd was $17,000 from which a dividend of $5,000 was paid in that year. d) The debentures were issued by Chu Ltd at nominal value on 1 July 2008, and are redeemable on 30 June 2013. Kwok Ltd acquired its holdings ($60 000) of these debentures on the blunt market on 1 January 2009,...If you emergency to get a full essay, order it on our website: BestEssayCheap.com

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