Statement of financial position for the ZX Group as at 31 December 2012 ASSETS (all workings in $000)

$000

Non-current assets

Property, plant and equipment (20,250 + 11,000)

31,250

Goodwill (W1)

2,324

33,574

Current assets (16,000 + 5,000)

21,000

Total assets

54,574

EQUITY AND LIABILITIES

Equity attributable to owners of the parent

Share capital ($1.00 shares)

5,000

Retained earnings (W2)

27,734

32,734

Non-controlling interest (W3)

2,240

Total equity

34,974

Total liabilities (14,800 + 4,800)

19,600

Total equity and liabilities

54,574

W1 Goodwill

$000

$000

Consideration transferred

8,750

Non-controlling interest (40% x $10,280,000)

4,112

12,862

Net assets at date of acquisition:

Share capital

1,000

Retained earnings at acquisition date

9,280

(10,280)

Goodwill at acquisition

2,582

Impairment 10% in 2011

(258)

Goodwill at 31 December 2012

2,324

W2 Consolidated retained earnings

ZX Group

CV

$000

$000

As reported in SOFP

28,200

10,200

Less pre-acquisition retained earnings

(9,280)

920

Group share of CV ($920,000 x 60%)

552

Impairment of goodwill (as in W1 above)

(258)

Adjustment to parent's equity (W4)

(760)

Consolidated retained earnings

27,734

W3 Non-controlling interest

$000

Non-controlling interest at acquisition (W1)

4,112

Plus NCI share of post acquisition retained earnings (as in W2 above) (40% x $920,000)

368

NCI at date of transfer of additional 20% to ZX

4,480

50% transferred on 31 December 2012

(2,240)

NCI at 31 December 2012

2,240

W4 Adjustment to parent's equity

$000

Consideration transferred

3,000

Net assets transferred (W3)

(2,240)

Debit to group retained earnings

760