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Host Limited, its subsidiary Supa Limited and sub-subsidiary Sport Limited operate in the media industry. The following financial statements relate to the three companies for the...

      

Host Limited, its subsidiary Supa Limited and sub-subsidiary Sport Limited operate in the media industry.
The following financial statements relate to the three companies for the year ended 31 December 2010:
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Additional information:
1. Host Limited acquired 90% of the ordinary share capital of Supa Limited on 1 January 2005 when the retained profit, of Supa Limited were Sh. 1,425 million. Subsequently, Supa Limited acquired 80% of the ordinary share capital of Sport Limited on 1 January 2007 when the retained profits of Sport Limited were Sh.950 million.
2. During the year 2010, Sport Limited sold goods to Supa Limited at a selling price of Sh.480 million making a profit of 25% on cost. Sh.75 million -worth of these goods were still in the inventory of Supa Limited at the end of the year Supa Limited still owed Sport Limited Sh. 100 million as at 31 December 2010.
3. During the year 2010, Supa Limited sold goods to Host Limited at a selling price of Sh.260 million making a profit of /) on cost. Sh.60 million worth of these goods were still in the inventory of Host Limited as at the end of the year. Host Limited still owed Supa Limited Sh.50 million as at 31 December 2010.
4. During the year, Host Limited sold an item of plant to Supa Limited at a selling price of Sh.240 million reporting a profit of 20% on cost. The group charges depreciation at the rate of 20% on cost and this is included as part of the cost of sales.
5. The entire goodwill of Supa Limited has been impaired and by 31 December 2009, 60% of the goodwill of Sport Limited was impaired. An additional half of the balance of goodwill in Sport Limited is considered impaired. The group uses the partial goodwill method.

Required:
a) Consolidated income statement for the year ended 31 December 2010.
b) Consolidated statement of changes in equity (retained profits only) as at 31 December 2010.
c) Consolidated statement of financial position as at 31 December 2010.

  

Answers


Kavungya
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Kavungya answered the question on December 10, 2021 at 10:16


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