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Consolidation I – Seminar Solutions
Exercise 1

Workings:

1. Group Structure Lancaster

18,000 / 30,000 shares = 60%

L plc owns 60% of Y Ltd York

2. Goodwill
| £’000 |
Purchase consideration | 75 |
% x York’s total net assets @ Acqn date | |
60% x (30 + 70) | 60 |
Goodwill | 15 |

3. Non-controlling interest

% of N’s total net assets @ Balance sheet date
40% x 210 84

4. Group Retained Earnings

Lancaster Plc retained earnings | 400 |
Add: | |
Lancaster’s share of post acquisition earnings in York | | 60% x (180,00...

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Keywords

-70 000 029 1 1/2 10 100 12 12345 15 150 160 18 180 1m 2 200 2011 210 228 25 250 25p 3 30 31.12.11 325 350 4 40 400 428 450 466 485 5 50 571 5m 60 600 60p 66 70 740 75 800 84 857 9 950 972 acqn acquisit add asset balanc book capit cash consider consolid conting control cost cr current date dr earn eclips equiti exercis fair financi full goodwil group head identifi interest invest issu juli l lancast less liabil ltd mark method n nci net non non-control non-curr own partial per plc posit post premium properti purchas record retain revalu seminar share sheet solut statement structur tangibl total transfer valu w2 w3 w4 work x y york