(The first question in this series on group reporting incorporates the need to determine whether or not a subsidiary's holding in another entity should be considered on deciding whether or not a subsidiary exists. However, it also covers the normal consolidation adjustments for minority interests and pre-acquisition reserves. A special section on IAS 19 Employee Benefits is also included, as well as the decision to move from a policy of revaluation of fixed assets to one of retention of cost.)
The following draft balance sheets relate to Rod, a public limited company, Reel, a public limited company, and Line, a public limited company, as at 30 November 2002:
| Rod $m | Reel $m | Line $m | |
|---|---|---|---|
| Non-current assets | |||
| 1,230 | 505 | 256 |
| 640 | ||
| 160 | 100 | |
| 2,030 | 605 | 256 | |
| Current assets | |||
| 300 | 135 | 65 |
| 240 | 105 | 49 |
| 90 | 50 | 80 |
| 630 | 290 | 194 | |
| Total assets | 2,660 | 895 | 450 |
| Capital and reserves | |||
| Called up share capital | 1,500 | 500 | 200 |
| Share premium account | 300 | 100 | 50 |
| Revaluation reserve | 70 | ||
| Accumulated reserves | 625 | 200 | 60 |
| 2,425 | 800 | 380 | |
| Non-current liabilities | 135 | 25 | 20 |
| Current liabilities | 100 | 70 | 50 |
| Total equity and liabilities | 2,660 | 895 | 450 |
The following information is relevant to the preparation of the group financial statements:
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