Additional information i. Victory acquired 6,250 shares of Comfort Ltd in 2005 at a total cost of GH¢12,000. This acquisition gives Victory Ltd significant influence over Comfort Ltd.
At the date of acquisition, Comfort Ltd’s retained earnings had a balance of GH¢4,300. The fair values of Comfort Ltd’s assets and liabilities approximated their carrying amounts. ii. On 1 January, 2012, Victory Ltd acquired 32,000 of Happy Ltd’s shares at a total cost of GH¢29,000. At the date of acquisition, Happy Ltd’s retained earnings had a balance of GH¢3,500. The fair values of the assets and liabilities approximated their carrying amounts except fora piece of land with a carrying amount of GH¢2,000 which had a fair value of GH¢2,500. This fair valuation adjustment has not yet been reflected in the separate financial statement of Happy Ltd. iii. The investment income of Victory Ltd relates to dividends received from the investee entities as follows Happy
GH¢800
Comfort GH¢200 Victory ltd also paid interim dividend of GH¢10,000. iv. In 2012, Happy Ltd sold goods to Victory Ltd at a markup of 20%. The goods cost Happy Ltd GH¢1,000 and one-half remained in inventory at the year end. v. Victory Ltd undertakes annual impairment reviews of goodwill. An impairment loss of
GH¢1,500 has been identified in respect of Happy Ltd for the year ended 31
December 2012. So far, no impairment loss relating to Comfort Ltd is identified. vi. The group has a policy of measuring non-controlling interest as proportionate share of net assets of subsidiary. Required a. Prepare the consolidated statement of profit or loss and other comprehensive income for Victory Ltd group for the year ended 31 December 2012. b. Prepare the consolidated statement of financial position of Victory Ltd as at 31 December 2012
