Icaew diploma in ifrss
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| Parent Subsidiary $’000 $’000 Total comprehensive income 2,364 880 Dividends paid (120) (50) New share capital issued during the year (nominal value + premium on issue) 500 200 The share capital issued by the subsidiary was issued in proportion to ownership rights of existing owners. Requirement Show the change inequity reported in the consolidated statement of changes inequity of the parent (allocated between amounts due to equity holders of the parent and non-controlling interests. (3 marks) ICAEW\DIPLOMA IN IFRSs Page 7 of 13 1(l) A company purchased 16 million shares (representing an 80% controlling interest) in another company on 1 July 2010. The terms of the purchase were as follows 1 share in the parent for every 4 shares in the subsidiary An immediate cash payment of $20.5 million A payment of 50% of the company's average annual profit for the first two years to be settled three years after the acquisition date. On 1 July 2010, the expected value of this payment (excluding any adjustment for the time value of money) was $10.2 million The subsidiary's shares were trading at $5.40 at the date of acquisition. The parent's shares were trading at $15.20. As a result of additional information available since the acquisition, the expected value of the payment based on profit (excluding adjustment for the time value of money) was revised to $11.4 million at 31 December 2010. An appropriate annual discount factor for this company to use where necessary is 8%. Download 149.62 Kb. Share with your friends:
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