Assessment Type: Assignment – individual assessment – short report on financial statements and calculations Value: 20%. Due Date: Week 10 – the exact due date and time will be advised in Moodle...

Running Head: CONSOLIDATION        1
CONSOLIDATION         2
CONSOLIDATION
NAME:
ID NUMBER:
Table of Contents
1)    3
2)    3
3)    4
4)    4
5)    6
Reference    8
1)
    Calculation of Net Asset
    Particulars
    Date of acquisition
    Share Capital
    648000
    Reserves and Surplus
    278000
    Retained Earnings
    222000
    Book Value of Net Assets
    1148000
    Revaluation Of Assets on the data of acquisition
    Inventories (500000-278000)
    222000
    Land (999000-555000)
    444000
    Plant (1166000-648000)
    518000
    Fair Value of Identifiable Net Assets
    2332000
According to Beams, Brozovsky and Shoulders (2000), in case of consolidation, there is a requirement to calculate the Net book of Assets along with fair value of identifiable assets. From the above calculations, it can be observed that book value of Net Assets is $1148000 and the fair value of the identifiable assets is $232000. However, there is no extra benefit to Alma for acquiring the 92% share. In fact, there is a loss for purchasing the 92% share, which can be seen in the next part of the assignment.
2)
    Calculation of Goodwill
    Net Investment
    1850000
    Add: Non-Controlling Interest (2332000*8%)
    186560
    Less: Fair...