资源描述：
《Class test solutions英文文献资料 》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。
1、Question1(30marks)On1July2013PeachLtdacquired70%ofthesharecapitalofDaisyLtdfor$280,000.Atthatdate,therelevantbalancesintherecordsofDaisyLtdwere:$Sharecapital220000Generalreserve50000Retainedearnings60000AtthedateofacquisitionallassetsandliabilitiesofDaisyLtdwere
2、recordedintheaccountingrecordsatamountsequaltotheirfairvalueswiththeexceptionofthefollowingassets:CarryingamountFairvalue$$Inventory800013000Machinery6000070000Allinventoryonhandatacquisitiondatewassoldby30June2014.Thecostofthemachinerywas$90,000andhadafurther5-
3、yearlifefromtheacquisitiondate.AtacquisitiondateDaisyLtdwasinvolvedinacourtcasethatcouldpotentiallyresultinthecompanypayingdamagestoacompetitor.DaisyLtdclassifiedthisasacontingentliabilityinthenotestoitsfinancialstatements.PeachLtdestimatedthefairvalueofthisliab
4、ilitytobe$18,000.Theclaimwassettledon1March2016foranamountof$12,000.Additionalinformation:a)Duringtheyearending30June2015,DaisyLtdpurchasedinventoryfromPeachLtdfor$16,000.ThecostofthisinventorytoPeachLtdwas$11,000.60%ofthisinventorywassoldbyDaisyLtdtoexternalpar
5、tiesby30June2015.ThebalanceoftheinventorywassoldtoexternalpartiesinOctober2015.b)Duringtheyearending30June2016,DaisyLtdsoldinventorytoPeachLtdfor$20,000.TheinventoryhadpreviouslycostDaisyLtd$16,000.By30June2016,PeachLtdhadsold$15,000ofthetransferredinventoryfor$
6、21,000toexternalparties.c)On1January2014,DaisyLtdsoldanitemofequipmenttoPeachLtdfor$60,000.Theequipmenthadacostof$75,000andacarryingamountof$42,000atthedateoftransfer.Bothentitieschargedepreciationatarateof20%p.a.straight-line.d)Thecurrentyeartransferfromretaine
7、dearningstothegeneralreservebyDaisyLtdwasfrompost-acquisitionearnings.AllprioryeartransfersfromretainedearningstothegeneralreserveintherecordsofDaisyLtdwerefrompre-acquisitionearnings.e)ThemovementintheassetrevaluationsurplusaccountofDaisyLtdisasaresultofthereva
8、luationoflandbyDaisyat30June2015.f)Thegroupusesthepartialgoodwillmethod.g)Onrealisationofthebusinesscombinationvaluationreserve,atransferismadetoretainedearningsoncon
