Requirement Showing All Relevant

(Uptown Ltd and Downtown Ltd, investment in associates, IAS 28)
On 1 Jan 2020, Uptown Lid acquired a 40% stake in Downtown Ltd for $220,000 cash. At
the time of the acquisition, Downtown’s share capital was $300,000, its retained earnings
were $200,000, and all its assets and liabilities were fairly valued.
Below are the summarized financial statements of Downtown Ltd for the years ended 31 Dec
2020 and 2021. Downtown did not pay any dividends during 2020 and 2021.
#+
FYE 31 Dec ($’000)
2020
2021
Profit amp; Loss Statement:
Revenues
1,400
1,550
Expenses
(1,650)
(1,900)
Net Profit (Loss) after tax
(250
(350)
Balance Sheet:
Cash
210
170
Other assets
1,800
1,700
Total Assets
2,010
1,870
Total Liabilities
1,760
1,970
Share capital
300
300
Retained earnings
(50)
(400)
Liabilities amp; Equity
2,010
1,870Financial Accounting