CIMA F2 Advanced Financial Reporting F2 Question # 53 Topic 6 Discussion

CIMA F2 Advanced Financial Reporting F2 Question # 53 Topic 6 Discussion

F2 Exam Topic 6 Question 53 Discussion:
Question #: 53
Topic #: 6

ST acquired 75% of the 2 million $1 equity shares of CD on 1 January 20X3, when the retained earnings of CD were S3,550,000. CD has no other reserves.

ST paid $5,600,000 for the shares in CD and the non controlling interest was measured at its fair value of S1,400,000 at acquisition.

At 1 January 20X3, the fair value of CD's net assets were equal to their carrying amount, with the exception of a building. This building had a fair value of $1,000,000 in excess of its carrying amount and a remaining useful life of 25 years on 1 January 20X3.

At 31 December 20X5, the retained earnings of ST and CD were $8,500,000 and $5,250,000 respectively.

What is the figure for non-controlling interest to be shown in the consolidated statement of financial position of ST as at 31 December 20X5?


A.

$1,795,000


B.

$1,607,500


C.

$1,825,000


D.

$1,805,000


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