Type 1 Examination
Wittenborg University of Applied Sciences
www.wittenborg.eu

Question 2. Consolidation (30 marks)
A. The following are some of the elements which form part of the consolidated statement of
financial position:
a. Investment
b. Intra–group Assets and Liabilities
c. Intra–Group dividends (if any)
d. Unrealised profits
e. Non–controlling interest
Your task in this question is to:
(i) Identify the above elements in a statement of financial position from your case study
company and provide the excerpt where they are specifically shown a print screen
supported by reference is sufficient. Where any of them is not clear or explicitly
shown, you can explain where they ought to be shown in the consolidated statement
of financial position.

(ii) Based on the lessons you learned in this chapter, explain how each of these
elements (‘a to e’ above) are determined/calculated so as to be shown in the
statement of financial position as illustrated in your case study statement of financial
position. Provide qualitative explanations based on what you learned in this chapter
i.e no need for calculations.

Note that your review should relate to the two companies you have chosen. Avoid
copying and redeveloping materials that are available via various information sources. If
the financial statements to the two companies you have chosen are not attached as an
appendix (Only the relevant part of the financial statements is required), your work will
not be graded.

B. Calculate the goodwill that has been explicitly explained or has implicitly been paid in the
transaction (State your assumptions). Elaborate on the acquiring company’s (explicit or
implicit) argumentation on the determined goodwill. In addition, show how much of this
goodwill has materialized in the results in the three years following the transaction.