Akl P4.3 & P4.4
Akl P4.3 & P4.4
Akl P4.3 & P4.4
Subsidiary Co
Statement of Financial Position
As at 31 December 20x0 (date of acquisition)
Shareholders' equity
Share capital $ 320,000
Retained Earnings $ 250,000
$ 570,000 $ 700,000
Parent Co Subsidiary Co
Net profit before tax (including dividend income) $ 550,000 $ 100,000
Less tax expense $ 110,000 $ 20,000
Net profit after tax $ 440,000 $ 80,000
Less dividend declared $ 100,000 $ 24,000
Profit retained for the year $ 340,000 $ 56,000
Retained earnings, 1 January $ 1,000,000 $ 250,000
Retained earnings, 31 December $ 1,340,000 $ 306,000
Required:
1. What is the goodwill arising from the applications of IFRS 3?
2. Prepare the consolidation adjustments for the year ended in 31 December 20x1
3. Perform an analytical check on the NCI balance as at 31 December 20x1
4. Show the consolidation adjustments that need to be passed in 20x2 to re-enact the
consolidation adjustments of 20x1
5. Prepare the conslidated income statement for the year ended 31 December 20x1
1. What is the goodwill arising from the applications of IFRS 3?
2. Prepare the consolidation adjustments for the year ended in 31 December 20x1
NPAT $ 80,000
Current adjustment
Depreciation adj. (CJE 4) $ (15,000)
COGS adj. (CJE 5) $ (10,000)
Written down of A/R adj. (CJE 6) $ 30,000
$ 5,000
Tax expense $ (1,000)
$ 4,000
Impairment loss of goodwill (CJE 2) $ (50,000)
Adjusted NPAT $ 34,000
NCI shares @20% $ 6,800
CJE 1 $ 250,000
CJE 3 $ (4,800)
CJE 7 $ 6,800
Balance NCI (31/12/20x1) $ 252,000
Hak NCI = Hak NCI atas net aset teridentifikasi (%NCI x Net aset teridentifikasi) + Hak NCI atas Goodwill
4. Show the consolidation adjustments that need to be passed in 20x2 to re-enact the consolidation adjustments of 20x1
Consolidation Entries
Parent Co Subsidiary Co Dr Cr Consolidation
$ 550,000 $ 100,000 $ 50,000 CJE 2 $ 585,800
$ 19,200 CJE 3
$ 15,000 CJE 4
$ 10,000 CJE 5
CJE 6 $ 30,000
Fair value was different from book value of the following assets of S Co
Remaining useful life for the fixed assets as at acquisition date was five years and residual
value of the fixed assets was zero. Fair value of NCI as at acquisition date was $345,000.
The financial statement of P Co and S Co for the year ended 31 December 20x5 are shown
below. Assume a tax rate of 20% throughout.
Required:
1. Prepare the consolidation adjustments for the year ended 31 December 20x5
2. Prepare the consolidation worksheets for the year ended 31 December 20x5
3. Reconcile the NCI interest' balance as at 31 December 20x5
1. Prepare the consolidation adjustments for the year ended 31 December 20x5
dation Worksheet
x5
Consolidation entries
Cr Consolidation
CJE 1 $ 3,200,000 $ -
CJE 1 $ 6,600,000
CJE 2 $ 20,000 $ (40,000)
CJE 3 $ 20,000
$ 6,560,000
CJE 5 $ 500,000 $ -
$ 1,920,000
$ 1,800,000
$ 320,000
$ 320,000
CJE 1 $ 2,315,000
$ 13,235,000
CJE 1 $ 3,000,000
WS 1 $ 157,600 $ 3,737,400
CJE 1 $ 345,000 $ 492,800
CJE 2 $ 400
CJE 4
CJE 7 $ 25,000
CJE 8 $ 130,400
CJE 5 $ -
$ 5,822,800
CJE 1 $ 20,000 $ 12,000
CJE 2
CJE 3
$ 170,000
$ 13,235,000
$ 492,800