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Afar

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Chels Visperas
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18 views

Sub

Afar

Uploaded by

Chels Visperas
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 8

Downstream Upstream

Parent seller 100% Parent buyer 1000


80%
1000
Subsidiary buyer Subsidiary seller 100%

Books of Parent Books of Subsidiary


Cash 100,000 Inventory 100,000
Sales 100,000 Accounts Payable 100,000

COS 70,000 Cash 120,000


Inventory 70,000 Sales 120,000

Equity in Subsidiary Profit 9000 COS 70,000


Investment in Subsidary 9000 Inventory 70,000

2 year
Cash 80,000 Inventory 80,000
Sales 80,000 Accounts Payable 80,000

COS 56000 Cash 150,000


Inventory 56000 Sales 150,000

Investment in Subsidary 9000 COS 60,000


Equity in Subsidiary Profit 9000 Inventory 60,000
Sold
COS 30,000
Equity in Subsidiary Profit 6000 Inventory 30,000
Investment in Subsidary 6000
800

80%
200

Sales 120,000
Inventory, end 30,000
Unrealized Profit - ICT 9000 30%
21,000
A O; NI O

Inv, beg 30,000


Pur 80,000
Inv, end 20,000 30% 6000
COS 90,000
80% 20%
Books of P Co. Books of S Co.
Investment in S Co. 4,000,000 Consideration transfer
Cash 4,000,000 NCI

Cash 400,000 Inventory 400,000 FV of Net Assets


Sales 400,000 Accounts Payable 400,000 SC
RE
COS 300,000 GW
Inventory 300,000

Cash xx
Sales xx
Sales
COS 320,000 80% COS
Inventory 320,000
Inventory,
Investment in S Co. 800,000 Revenue xx
Equity in S Co Profit 800,000 Retained Earnings 1,000,000
Expenses xx

Cash 320000 Retained Earnings 400,000


Investment in S Co. 320000 Cash 400,000

Equity in S Co. Profit 20000 Sales 400,000


Investment in S Co. 20000 COS 300,000
GP 100,000
80% 20%
CI NCI Consolidated
NI from own Operation
P Co. 1,500,000 1,500,000
S Co. 800000 200000 1,000,000
Less/Add: Amortizatio 0 0 0
Unrealized Profit -20000 -20000
Add: Realized Profit 0 0 0
2,280,000 200,000 2,480,000

Investment in S Co.
4,000,000
800000
320000
20000
4,800,000 340,000
4,460,000

NCI
1,000,000
200000
80000
80,000 1,200,000
1,120,000
Consideration transfer 4,000,000
1,000,000
5,000,000
FV of Net Assets
2,500,000
1,500,000 4,000,000
1,000,000

320,000

80,000

25%
Books of P Co Book of S Co
Investment in S Co. 800,000
Equity in S Co. Profit 800,000

Equity in S Co. Profit 16,000


Investment in S Co. 16,000

CI NCI Consolidated
NI from Own Operation
P Co. 1,500,000 1,500,000
S. Co 800,000 200,000 1,000,000
Amortized
Unrealized -16000 -4000 -20000
Realized
2,284,000 196,000 2,480,000

Investment in S Co.
Acquistion 4,000,000
SNI 800,000 0 SNI
320,000 Div
Amortize 0 0 Amortize
Realized 0 16000 Unrealized
4,800,000 336,000
4,464,000

NCI
1,000,000 Acquistion
SNI 200,000 SNI
Div 80,000
Amortize 0 0 Amortize
Unrealized 4000 Realized
84,000 1,200,000
1,116,000
Consideration Transferred 4,120,000 90%
NCI 435000 10%
4,555,000
FV of Net Assets S Co.
SC 1,000,000
SP 1,000,000
RE 1,750,000 Schedule of Amortization
3,750,000
Excess: Inventory 200,000
Inventory 800,000 Plant and 400,000
600,000 200,000 FIFO Goodwill 205,000
Plant and Equipment 900,000
500,000 400,000 4,350,000 10
Goodwill 205,000
90% 10%
CI NI Consolidation Downstream
NI from Operation Sales 500,000 100%
P Co 2,500,000 2,500,000 Cost 350000 70%
S Co 900000 100000 1,000,000 GP 150000 30%
Amortization -216000 -24000 -240000 Unrealized Profit 60000
Unrealized Profit on Inventorie -60000 -60000
40%
Unrealized Profit on Inventorie -40500 -4500 -45000 Inventory end 200000
150000
Realized Profit on Inventories
3,083,500 71,500 3,155,000

Jane
of Amortization
Year 1 Year 2-10
-200,000
-40000 -40000

-240,000 -40,000

Upstream
300,000 100%
210000 70%
90000 30%
45000

50%
150000

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