Question 1
2 / 14
In your answer
Page 14, Q1, WN-2 Identifiable net asset: '730'
What went wrong
[-2] Net assets were taken at closing carrying values instead of being analysed at 1.10.2025 and 31.3.2026. Topaz's retained earnings at acquisition were 220, not 260, and the extra plant depreciation of 3 was ignored.
Correct approach
At acquisition 690; at reporting date 725; post-acquisition 35.
In your answer
Page 13, Q1, Goodwill: '28.5'
What went wrong
[-1] NCI (182.5) and net assets (730) are both wrong, so goodwill is wrong.
Correct approach
576 + 172.50 – 690 = 58.50
In your answer
Page 14, Q1, NCI value: '202.5'
What went wrong
[-1] Full-year profit of 80 was used, and the fair-value depreciation and unrealised profit were ignored.
Correct approach
172.50 + 25% × 35 = 181.25
In your answer
Page 14, Q1, investment in associate: missing
What went wrong
[-1.5] Opal's equity-method carrying amount was not worked out.
Correct approach
150 + 21 – 6 = 165
In your answer
Page 14, Q1, consolidated other equity: missing
What went wrong
[-2] Consolidated retained earnings were not computed.
Correct approach
545 – 6 + 21 + 26.25 – 8 = 578.25
In your answer
Page 14, Q1, unrealised profit and intra-group balances: missing
What went wrong
[-1] Unrealised profit on closing stock (2) and the intra-group receivable/payable of 15 were not eliminated.
Correct approach
Profit 48 × 20/120 = 8; × 1/4 = 2; receivables 305, payables 265.
In your answer
Page 14, Q1, contingent consideration and liability: missing
What went wrong
[-1] The increase of 8 in contingent consideration was not charged to profit or loss, and the liability (44) and provision (10) were not presented.
Correct approach
Financial liability 44 (non-current); provision 10 (current); 8 charged to profit or loss.
In your answer
Page 14, Q1, Consolidated Balance Sheet: missing
What went wrong
[-2.5] No Schedule III Consolidated Balance Sheet was prepared.
Correct approach
Total assets and total equity and liabilities of 2,428.50.