Prepare the consolidated statement of financial position of Ghana Ltd group as at 31 December 2013

Here is the consolidated statement of financial position for Ghana Ltd group as at 31 December 2013. All figures are in GH¢'m. Step 1: Calculate Goodwill at Acquisition Consideration transferred (Ghana's investment): GH¢24,000 Non-controlling interest (NCI) at acquisition (fair value): GH¢5,000 (given in e) Total consideration: GH¢24,000 + GH¢5,000 = GH¢29,000 Fair value of identifiable net assets of Togo at acquisition (1 Jan 2011): Stated Capital: GH¢10,000 Retained Earnings: GH¢11,600 (given in a) Fair value adjustment for plant: GH¢1,000 (given in b) Total Fair Value of Net Assets: GH¢10,000 + GH¢11,600 + GH¢1,000 = GH¢22,600 Goodwill at acquisition: GH¢29,000 - GH¢22,600 = GH¢6,400 Step 2: Adjust for Fair Value of Plant and Depreciation Fair value adjustment on plant: GH¢1,000 Useful life: 10 years Annual depreciation on fair value adjustment: GH¢1,000 / 10 = GH¢100 Period from acquisition (1 Jan 2011) to reporting date (31 Dec 2013): 3 years Total accumulated depreciation on fair value adjustment: GH¢100 × 3 = GH¢300 Net carrying amount of fair value adjustment at 31 Dec 2013: GH¢1,000 - GH¢300 = GH¢700 Step 3: Adjust for Unrealized Profit in Inventory Ghana sells goods to Togo at a markup of 25%. This means the profit margin on selling price is (25)/(125) = 20\%. Goods sold by Ghana to Togo in 2013: GH¢3,000 (given in d) One-third of these goods are still in Togo's inventory: (1)/(3) × GH¢3,000 = GH¢1,000 Unrealized profit in closing inventory: 20\% × GH¢1,000 = GH¢200 Step 4: Adjust for Inter-company Balances and Cash in Transit Togo's payable to Ghana: GH¢1,100 (given in c) Ghana's receivable from Togo: GH¢1,500 (given in c) Difference (cash in transit): GH¢1,500 - GH¢1,100 = GH¢400 Consolidation adjustments: Eliminate GH¢1,100 from Trade Receivables and Trade Payables. Add GH¢400 to Cash and Cash Equivalents. Reduce Trade Receivables by GH¢400 (as it's no longer a receivable but cash in transit). Step 5: Calculate Goodwill at Reporting Date Goodwill at acquisition: GH¢6,400 (from Step 1) Impairment loss: GH¢2,000 (given in f) Goodwill at reporting date: GH¢6,400 - GH¢2,000 = GH¢4,400 Step 6: Calculate Non-Controlling Interest (NCI) at Reporting Date NCI at acquisition: GH¢5,000 Togo's post-acquisition retained earnings: GH¢15,800 (RE at 31/12/13) - GH¢11,600 (RE at 01/01/11) = GH¢4,200 NCI share of post-acquisition retained earnings: 20\% × GH¢4,200 = GH¢840 NCI share of fair value depreciation: 20\% × GH¢300 = GH¢60 (reduction) NCI share of goodwill impairment: 20\% × GH¢2,000 = GH¢400 (reduction) NCI at reporting date: GH¢5,000 + GH¢840 - GH¢60 - GH¢400 = GH¢5,380 Step 7: Calculate Consolidated Retained Earnings Ghana's retained earnings: GH¢25,200 Ghana's share of Togo's post-acquisition retained earnings: 80\% × GH¢4,200 = GH¢3,360 Ghana's share of fair value depreciation: 80\% × GH¢300 = GH¢240 (reduction) Unrealized profit in inventory: GH¢200 (reduction, fully attributable to parent) Ghana's share of goodwill impairment: 80\% × GH¢2,000 = GH¢1,600 (reduction) Consolidated Retained Earnings: GH¢25,200 + GH¢3,360 - GH¢240 - GH¢200 - GH¢1,600 = GH¢26,520 Step 8: Prepare Consolidated Statement of Financial Position Ghana Ltd Group \\ Consolidated Statement of Financial Position \\ As at 31 December 2013 lrr Assets & GH¢'m & GH¢'m \\ Property, Plant and Equipment & & \\ Ghana & 33,400 & \\ Togo & 20,400 & \\ Fair value adjustment (net) & 700 & 54,500 \\ Goodwill & & 4,400 \\ Current Assets & & \\ Inventory & & \\ Ghana & 11,500 & \\ Togo & 6,800 & \\ Less: Unrealized profit & (200) & 18,100 \\ Trade Receivables & & \\ Ghana & 8,500 & \\ Togo & 5,900 & \\ Less: Inter-company elimination & (1,100) & \\ Less: Cash in transit adjustment & (400) & 12,900 \\ Cash and Cash Equivalent & & \\ Ghana & 5,000 & \\ Togo & 2,900 & \\ Add: Cash in transit & 400 & 8,300 \\ Total Assets & & 98,200 \\ & & \\ Equity and Liabilities & & \\ Equity attributable to owners of parent & & \\ Stated Capital & 40,000 & \\ Retained Earnings & 26,520 & 66,520 \\ Non-Controlling Interest & & 5,380 \\ Total Equity & & 71,900 \\ & & \\ Current Liabilities & & \\ Trade Payables & & \\ Ghana & 17,200 & \\ Togo & 10,200 & \\ Less: Inter-company elimination & (1,100) & 26,300 \\ Total Equity and Liabilities & & 98,200 \\ 3 done, 2 left today. You're making progress.