Question 1: Trinidad The statements of Financial Position of two companies are as follows for 31st December Year 1 Tr

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Question 1: Trinidad
The statements of Financial Position of two companies are as follows for 31st December Year 1
Trinidad
Tobaga
$m
$m
Investment in
Tobaga
800
Assets
1,000
900
1,800
900
Ordinary Shares
($1)
400
300
(300/1= 300 million shares)
Accumulated
Profits
500
400
Equity
900
700
Liabilities
900
200
1,800
900
Additional Information:
Trinidad has today, 31st December Year 1 acquired 225 m shares of Tobago’s shares
Required:
Prepare the Consolidated Statement of Financial Position for the Trinidad group.
Question 2 : Croatio: Pre and Post Acquisition reserves
The Statements of Financial Position of two companies are as follows for 31st December Year 1
Croatio
Zagreb
$m
$m
Non-Current Assets
Tangible
1,000
800
Investment in Zagreb
600
Current Assets
400
200
2,000
1,000
Ordinary Shares ($1)
800
100
Accumulated Profits
750
400
Equity
1,550
500
Non-Current Liabilities
250
300
Current Liabilities
200
200
2,000
1,000
Additional Information:
Croatia acquired 60m shares in Zagreb one year ago, 1/1/Year 1, when the reserves of Zagreb were $60M.
Required:
Prepare the Consolidated Statement of Financial Position for the Croatia group for year 2.
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