分析新完毕sbr讲义part11b12trailer

1、Trailer (06/13)本题中Complex Group考点18/09起移出考纲，功利来讲可以不掌握。但建议第一轮学习仍然要会，实务 非常重要。Trailer (06/13) - QuestionTrailer, a public limited company, operates in the manufacturing sector. Trailer has investments in two other companies. The draft statements of financial position at 31 May 20X3 are as follows.Trail

2、er$mPark$mCaller$mAssetsNon-current assets:Property, plant and equipment Investment in subsidiariesPark CallerFinancial assets1,4401,1001,3001,2503103203,3208954,215 1,270212,3916813,072 1411,4411501,591Current assets Total assetsTrailer (06/13) - QuestionEquity and liabilities Share capital Retaine

3、d earningsOther components of equity Total equityNon-current liabilities Current liabilities Total liabilitiesTotal equity and liabilities1,7501,2401253,1159851151,1004,2151,210930802,220765878523,072800350951,2451501963461,591Trailer (06/13) - QuestionThe following information is relevant to the pr

4、eparation of the group financial statements.(a)On 1 June 20X1, Trailer acquired 14% of the equity interests of Caller for a cash consideration of $260 million and Park acquired 70% of the equity interests of Caller for a cash consideration of $1,270 million. At 1 June 20X1, the identifiable net asse

5、ts of Caller had a fair value of $990 million, retained earnings were $190 million and other components of equity were $52 million. At 1 June 20X2, the identifiable net assets of Caller had a fair value of $1,150 million, retained earnings were $240 million and other components of equity were $70 mi

6、llion. The excess in fair value is due to non- depreciable land.Trailer (06/13) - Question(a)The fair value of the 14% holding of Trailer in Caller was $280 million at 31 May 20X2 and $310 million at 31 May 20X3. The fair value of Park's interest in Caller had not changed since acquisition.(b)On

7、 1 June 20X2, Trailer acquired 60% of the equity interests of Park, a public limited company. The purchase consideration comprised cash of $1,250 million. On 1 June 20X2, the fair value of the identifiable net assets acquired was $1,950 million and retained earnings of Park were $650 million and oth

8、er components of equity were $55 million. The excess in fair value is due to non-depreciable land.Trailer (06/13) - Question(b)It is the group's policy to measure the non-controlling interest at acquisition at its proportionate share of the fair value of the subsidiary's net assets.(c) Goodw

9、ill of Park and Caller was impairment tested at 31 May 20X3. There was no impairment relating to Caller. The recoverable amount of the net assets of Park was $2,088 million. This amount includes the cost of Park's investment in Caller. There was no impairment of the net assets of Park before thi

10、s date and any impairment loss has been determined to relate to goodwill and property, plant and equipment.Trailer (06/13) - Question(d)Trailer has made a loan of $50 million to a charitable organisation for the building of new sporting facilities. The loan was made on 1 June 20X2 and is repayable o

11、n maturity in three years' time. Interest is to be charged one year in arrears at 3%, but Trailer assesses that an unsubsidised rate for such a loan would have been 6%. The only accounting entries which have been made for the year ended 31 May 20X3 are the cash entries for the loan and interest

12、received which have resulted in a balance of $48.5 million being shown as a financial asset.Trailer (06/13) - Question(e)On 1 June 20X1, Trailer acquired office accommodation at a cost of $90 million with a 30-year estimated useful life. During the year, the property market in the area slumped and t

13、he fair value of the accommodation fell to $75 million at 31 May 20X2 and this was reflected in the financial statements. However, the market recovered unexpectedly quickly due to the announcement of major government investment in the area's transport infrastructure. On 31 May 20X3, the valuer a

14、dvised Trailer that the offices should now be valued at $105 million.Trailer has charged depreciation for the year but has not taken account of the upward valuation of the offices. Trailer uses therevaluation m advised to do so.and records any valuation change whenTrailer (06/13) - Question(f)Traile

15、r has announced two major restructuring plans. The first plan is to reduce its capacity by the closure of some of its smaller factories, which have already been identified. This will lead to the redundancy of 500 employees, who have all individually been selected and communicated with. The costs of

16、this plan are $9 million in redundancy costs, $4 million in retraining costs and $5 million in lease termination costs. The second plan is to re-organise the finance and information technology department over a one-year period but it does not commence for two years. The plan results in 20% of financ

17、e staff losing their jobs during the restructuring. The costs of this plan are $10 million in redundancy costs, $6 million in retraining costs and $7 million in equipment lease termination costs. No entries have been made in the financial statements for the above plans.Trailer (06/13) - Question(g)T

18、he following information relates to the group pension plan of Trailer1 June 20X2 ($m)2831 May 20X3 ($m)2935Fair value of plan assetsActuarial value of defined benefit obligation30The contributions for the period received by the fund were $2 million and the employee benefits paid in the year amounted

19、 to $3 million. The discount rate to be used in any calculation is 5%. The current service cost for the period based on actuarial calculations is$1 million. The above figures have not been taken into account for the year ended 31 May 20X3 except for the contributions paid which have been entered in

20、cash and the defined benefit obligation.Trailer (06/13) - QuestionRequired(a) Prepare the group consolidated statement of financial position of Trailer Group as at 31 May 20X3. (35 marks)Trailer (06/13) - AnswerProperty plant and equipmentGoodwill Financial asset Current asset1440110013003540-16732.

21、593780.59398480.7532089521681141-1.25.34Equity and liabilities share capital Retained earning OCENCI17501254.64170.1892.6Non-current liabilities Current liabilities9851157658715019661419064126385.34Trailer (06/13) - AnswerW1 GoodwillParkCallerPre-existing SHConsideration NCI280.00762.00506.001,250.0

22、0780.001270*60%1150*44%1950*40%Less: FV of NA Share Capital REOCEFV adjustment Goodwill - 2002/06/01Goodwill Impairment 133.33*60%121065055358002407040(1,950.00)80.00(80.00)0.00(1,150.00)398.00Trailer (06/13) - AnswerW2 Goodwill Impairment2003/05/31NAFV adjPark 2,220.0035.00133.332,388.33(300.33)2,0

23、88.00Goodwill80/60%notionalImpairment loss Recoverable amountAllocated to: Goodwill PPE133.33167.00300.33Trailer (06/13) - AnswerW3 Loan2002/06/011.5/1.06+1.5/(1.062)+(1.5+50)/(1.063)Interest income 45.99*6%Coupon received2003/05/3145.992.76(1.50)47.25Dr4.01CrRE - charitable expense RE - interest in

24、comeFinancial Asset2.761.25Trailer (06/13) - AnswerW4 PPE2001/6/1Dep 2002/5/31Impairment loss Recoverable amount Dep2003/5/31Revaluation gain Revalued amount Correct:90.00(3.00)87.00(12.00)75.00(2.59)72.4132.59105.0090/3075/29Dr 32.59CrPPE RE OCE11.5921Trailer (06/13) - AnswerW5 ProvisionDrCr14Provi

25、sonRE14Trailer (06/13) - AnswerW6 PensionPV of Obligation 30FV of plan asset 282-31.42002/06/01Contribution Benefit paid Net interestCurrent service cost Remeasurement 2003/05/31-31.515.5350.629Trailer (06/13) - AnswerW6 PensionDR 0.114.9CRRE - Net interest costRE - Current service Cost OCENet pensio