 Workings :

 Step-1 (Group structure)

Investment in S = ___ % consolidate

At acquisition date = _____________
At reporting date = _____________

Investment in A = ___ % equity account

At acquisition date = _____________
At reporting date = _____________

 Step-2

Net asset in S
At acquisition At reporting
date date
$ $
Share capital
Share premium
Retained earnings
Fair value adjustment:
(Increase value of asset
in revaluation compared to
book value):
Asset ( Increase value at X X
acquisition date)
Asset ( Increase value in
post-acquisition period) X
Depreciation (On increase X
Value in revaluation)
Write off development expenditure
( Not recognize as an asset )
Write back amortization of
development expenditure
( De recognition as an asset )
  The current accounts of the two companies are reconciled at the year-end
with S owing P $75000.
S = Receivable in P’s SOFP
P = Payable in S’s SOFP
Accounting treatment :
Group B/S:
Current asset:
$
P- Receivables X
Less: Intra-group balance (75000)

Add: S-Receivables __X__

__X__

Current liability:
$
P- Payables X

S- Payables X
Less: Intra-group balance _(75000)_
__X__
__X__

 The current accounts of the two companies are reconciled at the year-end
with P owing S $75000.
P = Receivable in S’s SOFP
S = Payable in P’s SOFP
Accounting treatment :
Group B/S:
Current asset:
$
P- Receivables X
S- Receivables X
Less: Intra-group balance _(75000)_
__X__
__X__

Current liability:
$
P- Payables X
Less: Intra-group balance _(75000)_
X
S- Payables __X__
__X__