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The summarized statements of financial position of Close and Steele as at December 31, 2012 were as follows:
Close Steele
$ $
Assets
Non-current assets
Tangible assets 84,000 58,200
Investments 80,000
Current assets
Current accounts – Close 3,200
Cash at bank 10,000 3,000
Investments 2,500
Trade receivables 62,700 21,100
Inventory 18,000 12,000
Total 254,700 100,000
Equity and Liabilities
Trade payables 35,000 11,000
Current account – Steele 2,700 –
Called up share capital ($1 ordinary shares) 120,000 60,000
Share premium account 18,000
Revaluation surplus on January 1, 2012 23,000 16,000
Retained earnings on January 1, 2012 40,000 8,000
Profit for 2012 16,000 5,000
Total 254,700 100,000
Additional information
(1) On December 31, 2011, Close acquired 48,000 shares in Steele for $80,000 cash.
(2) The inventory of Close includes $4,000 goods from Steele invoiced to Close at cost plus 25%.
(3) A payment for $500 by Close to Steele, sent before December 31, 2012, was not received by Steel until January 2013.
(4) Goodwill has been impaired by $7,800 since the acquisition took place.
(5) Non-controlling interest is valued at the proportionate share of the subsidiary’s identifiable net assets; it is not credited with its share of goodwill.
Required:
Prepare the consolidated statement of financial position of Close and its subsidiary Steele as at December 31, 2012.
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