Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

CONSOLIDATION
Prac�ce Ques�ons
Ques�on No. 1 [Basic Example]
 Mommy Limited has owned 100% shares of Baby Limited since Baby's incorpora�on (i.e. 1
January 20X4).
 Below there are statements of financial posi�ons of both Mommy and Baby at 31 December
20X4.
Statement of financial position as at 31 December 20X4 Amount in CU

Mommy Ltd. Baby Ltd.

ASSETS
Non-current assets
Property, plant and equipment 124,000 90,000
Investment in Baby Ltd. (80,000 shares at 1 CU) 80,000 -
204,000 90,000
Current assets
Inventories 55,000 34,000
Trade and other receivables
- Baby Ltd 10,000 -
- Other receivables 30,000 18,000
Cash and cash equivalents 8,000 5,000
103,000 57,000

TOTAL ASSETS 307,000 147,000

EQUITY & LIABILITIES

Equity
Share Capital (1 CU each) 200,000 80,000
Retained earnings 62,000 45,000
262,000 125,000
Liabilities
Current liabilities
Trade payables
- Mommy Corp. - 10,000
- Other payables 35,000 12,000
Loans repayable within 12 months 10,000 -
45,000 22,000

TOTAL EQUITY & LIABILITIES 307,000 147,000

Required: Prepare consolidated statement of financial posi�on of Mommy Group as at 31 December

20X4.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 2 [Concept of Goodwill and NCI]

 Daddy Limited acquired 80% shares in Son Limited on 30 June 20X4 when Son's retained
earnings amounted to CU 12 000. The market price of Son's shares just before the acquisi�on
date was CU 1.2 per share.
 Daddy’s and Son's separate statements of financial posi�on at 31 December 20X4 are below:
Statement of financial position as at 31 December 20X4 Amount in CU

Daddy Ltd. Son Ltd.

ASSETS
Non-current assets
Property, plant and equipment 124,000 90,000
Investment in Son Ltd. (64,000 shares) 80,000 -
204,000 90,000
Current assets
Inventories 55,000 24,000
Trade and other receivables 43,000 12,000
Cash and cash equivalents 28,000 8,000
126,000 44,000

TOTAL ASSETS 330,000 134,000

EQUITY & LIABILITIES

Equity
Share Capital (1 CU each) 200,000 80,000
Retained earnings 90,000 17,000
290,000 97,000
Liabilities
Current liabilities
Trade payables 30,000 22,000
Short term Loan 10,000 15,000
40,000 37,000

TOTAL EQUITY & LIABILITIES 330,000 134,000

Required: Prepare consolidated statement of financial posi�on of Daddy Group as at 31 December

20X4 if:
a) Daddy decided to measure NCI at its propor�onate share of Son's net assets.
b) Daddy decided to measure NCI at its fair value.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 3 [Consolidated Income Statement] [CAF 5: FAR 2 – ICAP Study Text]
Plan Limited (PL) bought 80% of Scan Limited (SL) several years ago. The statements of
comprehensive income for the year to 31 December 20X1 are as follows:

Required: Prepare consolidated statement of comprehensive income for the year ended 31
December 20X1.

Ques�on No. 4 [Concept of Full Goodwill and NCI at Fair Value] [CAF 5: FAR 2 – ICAP Study Text]
Port Limited (PL) acquired 80% shares of Sort Limited (SL) on 1 January 2022 for Rs. 980 million. SL
has 50 million shares in issue and the market value of one share in SL was Rs. 24 and Rs. 26 on 1
January 2022 and 31 December 2022 respec�vely.

The fair value of net assets acquired in SL on 1 January 2022 has been measured at Rs. 1,100 million.

Required: Calculate goodwill at the date of acquisi�on. NCI is measured at fair value.

Ques�on No. 5 [Concept of Par�al Goodwill and NCI at Propor�onate Share]

[CAF 5: FAR 2 – ICAP Study Text]
Chart Limited (CL) acquired 80% shares of Smart Limited (SL) on 1 January 2022 for Rs. 980 million. SL
has 50 million shares in issue.

The fair value of net assets acquired in SL on 1 January 2022 has been measured at Rs. 1,100 million.

Required: Calculate goodwill at the date of acquisi�on. NCI is measured at propor�onate share of
subsidiary’s iden�fiable net assets.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 6 [Concept of Par�al Goodwill and NCI at Propor�onate Share of Net Assets]
[CAF 5: FAR 2 – ICAP Study Text]
Park Limited (PL) acquired 80% of Scan Limited (SL) on 1 January 20X1 for Rs. 230,000. The retained
earnings of SL were 100,000 at that date. It is PL’s policy to recognise non-controlling interest at the
date of acquisi�on as a propor�onate share of net assets.

The statements of financial posi�on PL and SL as at 31 December 20X1 were as follows:

Required: Consolidated statement of financial posi�on as at 31 December 20X1 for Park Limited.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 7 [Concept of Par�al Goodwill and NCI at Propor�onate Share of Net Assets]
[CAF 5: FAR 2 – ICAP Study Text]
Plus Limited (PL) acquired 80% of Shoe Limited (SL) several years ago for Rs. 30 million. The balance
on SL’s retained earnings was Rs. 5,000,000 at the date of acquisi�on. PL’s policy is to measure non-
controlling interest at the date of acquisi�on as a propor�onate share of net assets.

The dra� statements of financial posi�on of the two companies at 31 December 20X1 are:

Required: Prepare a consolidated statement of financial posi�on as at 31 December 20X1 for PL.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 8 [Impairment of Par�al Goodwill] [CAF 5: FAR 2 – ICAP Study Text]
Path Limited (PL) acquired 80% of Slot Limited (SL) when the retained earnings of SL were Rs. 20,000.
The values for assets and liabili�es in the statement of financial posi�on for SL represent fair values.
A review of goodwill at 31 December 20X1 found that goodwill had been impaired, and was now
valued at Rs. 55,000.

The statements of financial posi�on of a PL and SL at 31 December 20X1 are as follows:

Required: Prepare the consolidated statement of financial posi�on as at 31 December 20X1.

Ques�on No. 9 [Impairment of Par�al Goodwill] [CAF 5: FAR 2 – ICAP Study Text]
Pool Limited (PL) acquired 80% of Sole Limited (SL) 3 years ago. Goodwill on acquisi�on was Rs.
200,000. The annual impairment test on goodwill has shown it to have a recoverable amount of only
Rs. 175,000. Thus a write down of Rs. 25,000 is required.

Extracts of the statements of comprehensive income for the year to 31 December 20X1 are as
follows:

Required: Prepare consolidated statement of comprehensive income for the year ended 31
December 20X1.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 10 [Impairment of Par�al Goodwill] [CAF 5: FAR 2 – ICAP Study Text]
Badar Limited (BL) acquired 70% ordinary shares of Kashif Limited (KL) on 1 July 2021. The
statements of financial posi�on of both companies as at 30 June 2022 are as under:

The statements of comprehensive income of both companies for the year ended 30 June 2022 are as
under:

Addi�onal informa�on: BL measures non-controlling interest at propor�on of net assets of

subsidiary at the date of acquisi�on. On 30th June 2022, goodwill was impaired by 10% of its
recognised value.

Required: Prepare for BL, consolidated statement of financial posi�on as at June 30, 2022 and
consolidated statement of comprehensive income for the year then ended.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 11 [Impairment of Full Goodwill] [CAF 5: FAR 2 – ICAP Study Text]
Multan Limited (ML) acquired 70% ordinary shares of Nawab Limited (NL) on 1 July 2021.
The statements of financial posi�on of both companies as at 30 June 2022 are as under:

The statements of comprehensive income of both companies for the year ended 30 June 2022 are as
under:

Addi�onal informa�on: ML measures non-controlling interest at its fair value at the date of
acquisi�on. Market value of one share of NL on 1st July 2021 was Rs. 15. On 30th June 2022,
goodwill was impaired by 10% of its recognised value.
Required: Prepare for ML, consolidated statement of financial posi�on as at June 30, 2022 and
consolidated statement of comprehensive income for the year then ended.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 12 [Bargain Purchase Gain]

Saas Limited acquired 100% share in Bahu Limited on 30 June 20X4 for CU 85,000 paid in cash.
Statement of financial position as at 30 June 20X4 Amount in CU

Saas Limited Bahu Limited

ASSETS
Non-current assets
Property, plant and equipment 120,000 90,000
Investment in Bahu Limited (80,000 shares) 85,000 -
Deferred tax asset 4,000 -
209,000 90,000
Current assets
Inventories 85,000 24,000
Trade and other receivables
- Bahu Limited 8,000 -
- Other receivables 45,000 10,000
Cash and cash equivalents 45,000 5,000
183,000 39,000

TOTAL ASSETS 392,000 129,000

EQUITY & LIABILITIES

Equity
Ordinary shares (1 CU each) 200,000 80,000
Retained earnings 62,000 12,000
262,000 92,000
Liabilities
Current liabilities
Trade payables
- Saas Limited - 8,000
- Other payables 35,000 14,000
Loans repayable within 12 months 95,000 15,000
130,000 37,000

TOTAL EQUITY & LIABILITIES 392,000 129,000

Required: Prepare Saas Group's consolidated statement of financial posi�on as at 30 June 20X4.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 13 [Bargain Purchase Gain] [CAF 5: FAR 2 – ICAP Study Text]
Maha Limited (ML) acquired 70% ordinary shares of Anum Limited (AL) on 1 July 2021.
The statements of financial posi�on of both companies as at 30 June 2022 are as under:

The statements of comprehensive income of both companies for the year ended 30 June 2022 are as
under:

Addi�onal informa�on: ML measures non-controlling interest at propor�on of net assets of

subsidiary at the date of acquisi�on.
Required: Prepare for ML, consolidated statement of financial posi�on as at June 30, 2022 and
consolidated statement of comprehensive income for the year then ended.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 14 [Fair value of Considera�on transferred] [CAF 5: FAR 2 – ICAP Study Text]
Hamid Limited (HL) bought 60% ordinary shares of Rashid Limited (RL) on 1st January 2022.
Addi�onal informa�on:
 HL’s total share capital (before this acquisi�on) is Rs. 300 million consisted of 30 million shares of
Rs. 10 each.
 RL’s total share capital is Rs. 100 million consisted of 10 million shares of Rs. 10 each.
 On 1st January 2022, market value of one share of HL and RL was Rs. 29 and Rs. 21 respec�vely.
 Appropriate discount rate is 10%.
Amounts paid or commitments made for the acquisi�on:
i. One share in HL was given for every two shares in RL.
ii. Rs. 4 per share was paid immediately to previous owners of RL. Further Rs. 3 per share shall be
paid three years later. Furthermore, Rs. 2 per share shall be paid two year later provided that
profits of RL exceed a certain benchmark. The fair value of this condi�onal payment has been
es�mated at Rs. 5.48 million.
iii. Legal advisor was paid Rs. 0.5 million and a consultancy fee of Rs. 1.5 million was paid to
financial consultant.
Required:
a) Calculate Investment in RL at cost in the above business combina�on.
b) Calculate fair value of NCI at the date of acquisi�on.

Ques�on No. 15 [Fair value of Considera�on transferred] [SBR – BPP Workbook]

Pau, a public company, purchases a 60% interest of another company, Pol, on 1 January 20X1.
Scheduled payments comprised:
 Rs. 160 million payable immediately in cash
 Rs. 120 million payable on 31 December 20X2
 An amount equivalent to three �mes the profit a�er tax of Pol for the year ended 31 December
20X2, payable on 31 March 20X3
 Rs. 5 million of fees paid for due diligence work to a firm of accountants.
On 1 January 20X1, the fair value atributed to the considera�on based on profit was Rs. 54 million.
By 31 December 20X1, the fair value was considered Rs. 65 million. The change arose as a result of a
change in expected profits.
An appropriate discount rate for use where necessary is 5%.
Required: Explain the treatment of the payments for the acquisi�on of Pol in the financial
statements of the Pau Group for the year ended 31 December 20X1.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 16 [Fair value of Considera�on transferred] [CAF 5: FAR 2 – ICAP Study Text]
Maria Limited (ML) acquired 90% ordinary shares of Saima Limited (SL) on 1 July 2021.
The statements of financial posi�on of both companies as at 30 June 2022 are as under:

The statements of comprehensive income of both companies for the year ended 30 June 2022 are as
under:

(i) The break-up of investment figure is as follows:

*legal and consultancy fee

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

(ii) The arrangement for acquisi�on of SL also included following which have not been accounted
for yet:
 Share exchange: One share in ML for every two shares acquired in SL. At the date of
acquisi�on market value of one share of ML and SL was Rs. 28 and Rs. 21 respec�vely.
 Future cash payment: Addi�onal Rs. 4 per share shall be paid on 3o June 2024.
 Condi�onal cash payment: Another addi�onal Rs. 2 per share shall be paid on 30 June
2023 provided that SL earns con�nues to earn profit of Rs. 100 million or above �ll then.
The fair value of this condi�onal payment was es�mated to be Rs. 50 million on 1 July
2021. However, on 30th June 2022 the fair value has been es�mated at Rs. 48 million
only.
The appropriate discount rate is 9%.
(iii) ML measures non-controlling interest at fair value on the date of acquisi�on.
Required: Prepare for ML, consolidated statement of financial posi�on as at June 30, 2022 and
consolidated statement of comprehensive income for the year then ended.

Ques�on No. 17 [FV Adjustment in Net Assets of Subsidiary] [CAF 5: FAR 2 – ICAP Study Text]
Peak Limited (PL) bought 80% of Seek Limited (SL) 2 years ago. At the date of acquisi�on SL’s retained
earnings stood at Rs. 600,000.
The fair value of its net assets was not materially different from the book value except for the fact
that it had a brand which was not recognised in SL’s accounts. This had a fair value of Rs. 100,000 at
this date and an es�mated useful life of 20 years.
The statements of financial posi�on PL and SL as at 31 December 20X1 were as follows:

Required: Prepare a consolidated statement of financial posi�on as at 31 December 20X1.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 18 [FV Adjustment in Net Assets of Subsidiary] [CAF 5: FAR 2 – ICAP Study Text]
Pack Limited (PL) bought 80% of Sack Limited (SL) 2 years ago. At the date of acquisi�on SL’s retained
earnings stood at Rs. 600,000.
The fair value of SL’s net assets were Rs. 1,000,000. This was Rs. 300,000 above the book value of the
net assets at this date. The revalua�on was due to an asset that had a remaining useful economic life
of 10 years as at the date of acquisi�on.
The statements of financial posi�on PL and SL as at 31 December 20X1 were as follows:

Required: Prepare a consolidated statement of financial posi�on as at 31 December 20X1.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 19 [FV Adjustment in Net Assets of Subsidiary] [CAF 5: FAR 2 – ICAP Study Text]
On 1 January 2012, Hello acquired 60% of the ordinary share capital of Solong for Rs.110,000. At that
date Solong had a retained earnings balance of Rs.60,000. The following statements of financial
posi�on have been prepared as at 31 December 2015.

The fair value of Solong’s net assets at the date of acquisi�on was determined to be Rs.170,000. The
difference between the book value and the fair value of the new assets at the date of acquisi�on was
due to an item of plant which had a useful life of 10 years from the date of acquisi�on.
Required: Prepare the consolidated statement of financial posi�on of Hello and its subsidiary as at
31 December 2015.

Ques�on No. 20 [FV Adjustment in Net Assets of Subsidiary] [CAF 5: FAR 2 – ICAP Study Text]
Pipe Limited (PL) acquired 80% of Ship Limited (SL) 3 years ago. At the date of acquisi�on SL had an
office equipment with a fair value of Rs. 120,000 in excess of its book value. This asset had a useful
life of 10 years at the date of acquisi�on.
Extracts of the statements of comprehensive income for the year to 31 December 20X1 are as
follows:

Required: Prepare consolidated statement of comprehensive income for the year ended 31
December 20X1.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 21 [FV Adjustment in Net Assets of Subsidiary] [CAF 5: FAR 2 – ICAP Study Text]
The summarized dra� statement of financial posi�ons of the companies in a group at 31 December
2018 were:

Addi�onal informa�on is as follows:

(a) BL acquired 80% ordinary shares in FL on 1 January 2018, when FL had accumulated profits of
Rs.6,000.
(b) The subsidiary has not incorporated the fair values in its separate books and fair value
adjustments iden�fied by the parent company at the date of acquisi�on are as follows:

The group has a policy of measuring non-controlling interest at propor�onate share of net assets at
the date of acquisi�on. The 20% of goodwill has impaired to date.
Required: Prepare the consolidated statement of financial posi�on at 31 December 2018.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 22 [FV Adjustment in Net Assets of Subsidiary] [CAF 5: FAR 2 – ICAP Study Text]
Ruby Limited (RL) acquired 80% ordinary shares of Adeel Limited (AL) on 1 July 2021.
The statements of financial posi�on of both companies as at 30 June 2022 are as under:

The statements of comprehensive income of both companies for the year ended 30 June 2022 are as under:

Addi�onal informa�on:
(i) RL measures non-controlling interest at fair value at the date of acquisi�on that was calculated at Rs. 225
million. Goodwill has not impaired.
(ii) At the date of acquisi�on, all the assets of AL had fair value equal to their carrying amount except as
follows:

Required: Prepare for RL, consolidated statement of financial posi�on as at June 30, 2022 and consolidated
statement of comprehensive income for the year then ended.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 23 [Mid-Year Acquisi�on] [CAF 5: FAR 2 – ICAP Study Text]

Sana Limited (FL) acquired 75% ordinary shares of Amna Limited (AL) on 1 October 2021.
The statements of financial posi�on of both companies as at 30 June 2022 are as under:

The statements of comprehensive income of both companies for the year ended 30 June 2022 are as
under:

Non-controlling interest is measured at fair value at the date of acquisi�on that was determined at
Rs. 225 million.
Required: Prepare for SL, consolidated statement of financial posi�on as at June 30, 2022 and
consolidated statement of comprehensive income for the year then ended.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 24 [Mid-Year Acquisi�on] [CAF 5: FAR 2 – ICAP Study Text]

Pear Limited (PL) bought 70% of Sail Limited (SL) on 31st March this year. SL’s profit for the year was
Rs. 12,000. The statements of financial posi�on PL and SL as at 31 December 20X1 were as follows:

Required: Prepare the consolidated statement of financial posi�on as at 31 December 20X1.

Ques�on No. 25 [Mid-Year Acquisi�on] [CAF 5: FAR 2 – ICAP Study Text]

Poet Limited (PL) acquired 80% of Scar Limited (SL) on 1 October 20X1. Year end is 31 December. The
statements of comprehensive income for the year to 31 December 20X1 are as follows.

Required: A consolidated statement of comprehensive income for the year ended 31 December
20X1.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 26 [Mid-Year Acquisi�on] [CAF 5: FAR 2 – ICAP Study Text]

Fahad Limited (FL) acquired 75% ordinary shares of Aashir Limited (AL) on 1 October 2021.
The statements of financial posi�on of both companies as at 30 June 2022 are as under:

The statements of comprehensive income of both companies for the year ended 30 June 2022 are as
under:

Profits of both companies accrued evenly throughout the year.

Non-controlling interest is measured at fair value at the date of acquisi�on that was determined at
Rs. 225 million.
Required: Prepare for FL, consolidated statement of financial posi�on as at June 30, 2022 and
consolidated statement of comprehensive income for the year then ended.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 27 [Comprehensive Example] [CAF 5: FAR 2 – ICAP Study Text]

Tooba Limited (TL) acquired 80% ordinary shares of Maheera Limited (ML) on 1 July 2021.
The statements of financial posi�on of both companies as at 30 June 2022 are as under:

The statements of comprehensive income of both companies for the year ended 30 June 2022 are as under:

Addi�onal informa�on:
 During the year ML sold goods to TL for Rs. 75 million. These goods were priced at cost plus 25% mark-up.
TL has sold 80% of these goods at further mark-up of 15% to en��es outside group. By the year-end, TL
has paid (and ML has received) 50% of the amount due.
 On 1st January 2022, TL transferred one of its plant to ML for Rs. 140 million. The book value of this plant
on the date of transfer was Rs. 100 million and it had remaining useful life of 8 years at this date. ML had
immediately paid this amount to TL.
 TL measures non-controlling interest at fair value as at the date of acquisi�on that was measured at Rs.
225 million.
Required: Prepare for TL, consolidated statement of financial posi�on as at June 30, 2022 and consolidated
statement of comprehensive income for the year then ended.

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

Ques�on No. 28 [Comprehensive Example] [CAF 5: FAR 2 – ICAP Study Text]

Haseeb Limited (HL) acquired 80% ordinary shares of Raheem Limited (RL) on 1 July 2021.
The statements of financial posi�on of both companies as at 30 June 2022 are as under:

The statements of comprehensive income of both companies for the year ended 30 June 2022 are as under:

Addi�onal informa�on:
 During the year HL sold goods to RL for Rs. 80 million. These goods were priced at 25% margin. RL has sold
half of these goods to en��es outside group.
 On 1st January 2022, RL transferred one of its plant to HL for Rs. 130 million. The book value of this plant
on the date of transfer was Rs. 100 million and it had remaining useful life of 8 years at this date.
 On 30 June 2022, HL books show a receivable of Rs. 25 million from RL which does not match with RL
books which show a different payable balance to HL due to a cheque in transit of Rs. 7 million.
 HL measures non-controlling interest at fair value as at the date of acquisi�on that was measured at Rs.
225 million.
Required: Prepare for HL, consolidated statement of financial posi�on as at June 30, 2022 and consolidated
statement of comprehensive income for the year then ended.

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Ques�on No. 29 [Comprehensive Example] [CAF 5: FAR 2 – ICAP Study Text]

Following is the summarised trial balance of Fa�ma Limited (FL) and its subsidiary, Ali Limited (AL) for the year
ended December 31, 2018:

Following addi�onal informa�on is also available:

(i) On January 1, 2018, FL acquired 480 million shares of AL from its major shareholder for Rs.10,500
million.
(ii) The following inter-company sales were made during the year 2018:

(iii) On January 2, 2018, FL sold certain plants and machineries to AL. Details of the transac�on are as
follows:

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Consolida�on: Prac�ce Ques�ons Compiled by: Murtaza Quaid, ACA

(iv) The plants and machineries were purchased two years ago and were being depreciated on straight
line method over a period of five years. AL computed deprecia�on thereon using the same method
based on the remaining useful life.
(v) FL billed Rs. 100 million to AL for management services provided during the year 2018 and credited it
to opera�ng expenses. The invoices were paid on December 15, 2018.
(vi) Details of cash dividend are as follows:

AL has not recorded payment of dividend yet and FL has not recorded declara�on of dividend yet. However, FL
has recorded receipt of payment from AL.
Required: Prepare consolidated statement of financial posi�on and statement of comprehensive income of FL
for the year ended December 31, 2018. Ignore tax and corresponding figures.

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