According to IFRS 10 one of the first adjustments which should be made in consolidated statements is the elimination of the investment in the parent’s books and the owners’ equity section in the subsidiary’s books as at the date of acquisition
Statements of Financial Position as at 30 June 2008:
A Ltd
B Ltd
ASSETS
R
R
Investment in B Ltd: 10 000 Ordinary shares at fair value
10 000
-
Cash and cash equivalents
10 000
10 000
20 000
20 000
EQUITY AND LIABILITIES
Share capital
-20 000 ordinary shares
20 000
-
-10 000 ordinary shares
-
10 000
20 000
10 000
In A Ltd group consolidated statement of financial position how much will be recognised as share capital?
Select one:
a. R40 000
b. R30 000
c. R10 000
d. R20 000