(i) At the date of acquisition, the fair value of the NCI of Marina Bay Co was measured at $20,000
(ii) For consolidation purposes, at the date of acquisition the fair value of the non-depreciable land of Marina Bay Co exceeded its carrying value by $25,000. Marina Bay Co has not incorporated this fair value adjustment into its individual financial statements.
(iii) At the reporting date, Singapore Co is owed $5,000 by Marina Bay Co.
Required – Prepare the consolidated statement of financial position for the Singapore Group as at 31 December 20X2.
In approaching such a question, there are regular workings that have to be processed. It is necessary to establish the post-acquisition profits of the subsidiary (which are then split between the group and the NCI), the goodwill arising on acquisition as well as the closing balances of the NCI and group retained earnings. It is a good habit to first prepare a working showing the group structure to ensure that we have noted the parent's and the NCI's interest in the subsidiary’s profits and how long the subsidiary has been a member of the group.
W1 Group structure