Produce the consolidated statement of financial position for Vanguard Group as at 31 March 2021 consistent with internat
Posted: Tue Jan 18, 2022 12:58 pm
Produce the consolidated statement of financial position for
Vanguard Group as at 31 March 2021 consistent with international
accounting standards.
On 1 October 2020, Vanguard Ltd acquired 75% of Jupiter Ltd’s
equity shares by means of share exchange of two new shares in
Vanguard Ltd for every five acquired shares in Jupiter. In
addition, Vanguard issued to the shareholders of Jupiter a €100 10%
loan note for every 1,000 shares it acquired in Jupiter. Vanguard
has not recorded any of the purchase consideration, although it
does have other 10% loan notes already in issue.
The market value of Vanguard’s shares at 1 October 2020 was €2
each. The summarised statements of financial position of the two
companies as at 31 March 2021 are:
The following information is relevant:
1) At the date of acquisition (1 October 2020), Jupiter
has a negative balance on revenue reserves of €6 million. Also at
the date of acquisition, Vanguard conducted a fair value exercise
on Jupiter’s net assets which were equal to their carrying amount
(including Jupiter’s financial assets equity investment) with the
exception of an item of plant which had a fair value of €3 million
below its carrying amount. The plant had a remaining economic life
of three years at 1 October 2020 and depreciation is charged on a
straight-line basis
2) Each month since acquisition, Vanguard's sales to
Jupiter were consistently €4.6 million. Vanguards had marked these
up by 15% on cost. Jupiter had one month’s supply (€4.6 million) of
these goods in inventory at 31 March 2021. Vanguard’s normal
mark-up (to third party customers) is 40%.
3) Jupiter’s trade payable balance with Vanguard at 31
March 2021 was €2.8 million, which did not agree with Vanguard’s
equivalent trade receivable due to a payment of €900,000 made by
Jupiter on 28 March 2021. It was not received by Vanguard until 3
April 2021.
4) There was no impairment loss within the group during
the year ended 31 March 2021
Vanguard €m Jupiter €m 25.5 3.2 47.4 Property, Plant& Equipment Financial asset: equity investment 7.5 Stock Trade receivables Bank 20.4 14.8 2.1 37.3 8.4 9.0 nil 17.4 Current liabilities Bank overdraft Trade payables nil 17.6 9.1 19.7 13.0 74.6 (4.7) 24 Non-current liabilities 10% loan notes 8.0 66.6 nil 24 Share Capital (61) 40 20 Reserves (P&L) 26.6 66.6 4 24
Vanguard Group as at 31 March 2021 consistent with international
accounting standards.
On 1 October 2020, Vanguard Ltd acquired 75% of Jupiter Ltd’s
equity shares by means of share exchange of two new shares in
Vanguard Ltd for every five acquired shares in Jupiter. In
addition, Vanguard issued to the shareholders of Jupiter a €100 10%
loan note for every 1,000 shares it acquired in Jupiter. Vanguard
has not recorded any of the purchase consideration, although it
does have other 10% loan notes already in issue.
The market value of Vanguard’s shares at 1 October 2020 was €2
each. The summarised statements of financial position of the two
companies as at 31 March 2021 are:
- Produce The Consolidated Statement Of Financial Position For Vanguard Group As At 31 March 2021 Consistent With Internat 1 (28.62 KiB) Viewed 39 times
1) At the date of acquisition (1 October 2020), Jupiter
has a negative balance on revenue reserves of €6 million. Also at
the date of acquisition, Vanguard conducted a fair value exercise
on Jupiter’s net assets which were equal to their carrying amount
(including Jupiter’s financial assets equity investment) with the
exception of an item of plant which had a fair value of €3 million
below its carrying amount. The plant had a remaining economic life
of three years at 1 October 2020 and depreciation is charged on a
straight-line basis
2) Each month since acquisition, Vanguard's sales to
Jupiter were consistently €4.6 million. Vanguards had marked these
up by 15% on cost. Jupiter had one month’s supply (€4.6 million) of
these goods in inventory at 31 March 2021. Vanguard’s normal
mark-up (to third party customers) is 40%.
3) Jupiter’s trade payable balance with Vanguard at 31
March 2021 was €2.8 million, which did not agree with Vanguard’s
equivalent trade receivable due to a payment of €900,000 made by
Jupiter on 28 March 2021. It was not received by Vanguard until 3
April 2021.
4) There was no impairment loss within the group during
the year ended 31 March 2021
Vanguard €m Jupiter €m 25.5 3.2 47.4 Property, Plant& Equipment Financial asset: equity investment 7.5 Stock Trade receivables Bank 20.4 14.8 2.1 37.3 8.4 9.0 nil 17.4 Current liabilities Bank overdraft Trade payables nil 17.6 9.1 19.7 13.0 74.6 (4.7) 24 Non-current liabilities 10% loan notes 8.0 66.6 nil 24 Share Capital (61) 40 20 Reserves (P&L) 26.6 66.6 4 24