353411750.

xls

Extracts from 20X9 financial statements

Chip Ltd Holly Ltd Consolidated
(Parent) (Controlled entity) (Group)
$ $ $
Profit before tax 1,680,000 730,000 1,970,000
Tax expense (310,000) (120,000) (430,000)
Profit for the year 1,370,000 610,000 1,540,000
Retained earnings 1.1.X9 1,280,000 700,000 1,420,000
Total 2,650,000 1,310,000 2,960,000
Dividends paid (800,000) (550,000) (910,000)
Retained earnings 31.12.X9 1,850,000 760,000 2,050,000
Issued capital 1,600,000 1,000,000 1,800,000
Revaluation surplus 300,000 200,000 340,000
Fair value adjustment - - 56,000
Shareholders equity 3,750,000 1,960,000 4,246,000

Stats
353411750.xls

Stats
 353411750.xls

Acquisition analysis for Chip Ltd investment in Bug Ltd

$
Consideration transferred
Purchase consideration

Identifiable assets and liabilities assumed as recorded represented by:

Issued capital 1,000,000
Retained earnings 1.1.X9 700,000
Revaluation surplus 200,000
1,900,000
Fair value adjustment:
Land 400,000
Deferred tax liability 30% (120,000)
280,000

Identifiable assets & assumed liabilities acquired at fair value 2,180,000

Interest acquired 80%
Difference - goodwill on acquisition

Acq
 353411750.xls

1,900,000

(1,744,000)
156,000

Acq
 353411750.xls

Consolidation worksheet - 31 December 20X9

Chip Ltd Holly Ltd Elimin & Adjustments Consolidated
$ $ Dr. Ref Cr.
Profit before tax 1,680,000 730,000 440,000 iii
Tax expense (310,000) (120,000)
Profit for the year 1,370,000 610,000
Retained earnings 1.1.X9 1,280,000 700,000 560,000 ii
Total 2,650,000 1,310,000
Dividends paid (800,000) (550,000) iii 440,000
Retained earnings 31.12.X9 1,850,000 760,000
Issued capital 1,600,000 1,000,000 800,000 ii
Revaluation surplus 300,000 200,000 160,000 ii
Fair value adjustment - - 224,000 ii/i 280,000
Shareholders equity 3,750,000 1,960,000

CWorksheet
 353411750.xls

Consolidated
$
1,970,000
(430,000)
1,540,000
1,420,000
2,960,000
(910,000)
2,050,000
1,800,000
340,000
56,000
4,246,000

CWorksheet
 353411750.xls

Consolidation journal entries 31.12.X9

(i) Revaluation of land of Holly Ltd to fair value on consolidation and recognition
of pre-acquisition fair value adjustment after tax effect.
$ $
Dr. Land 400,000
Cr. Fair value adjustment 280,000
Cr. Deferred tax liability 120,000

(ii) Elimination of Chip Ltd's investment against the acquired capital, reserves and surpluses
of Holly Ltd based on Chip Ltd's 80% ownership interest.
$ $
Dr. Issued capital 800,000
Dr. Retained earnings 1.1.X9 560,000
Dr. Revaluation surplus 160,000
Dr. Fair value adjustment 224,000
Dr. Goodwill 156,000
Cr. Investment in Holly Ltd 1,900,000

(iii) Elimination of inter-company dividend paid by Holly Ltd, 80% x $550,000.

$ $
Dr. Dividend revenue (PBT) 440,000
Cr. Dividends paid 440,000

CJournal
 353411750.xls

ves and surpluses

CJournal
 353411750.xls

NCI memorandum account

Holly Ltd NCI PI Consolidated
$ $ $ $
(a) Profit for the year 610,000
NCI share 20% 122,000 1,418,000 1,540,000

(b) Retained earnings 1.1.X9 700,000

NCI share 20% 140,000 1,280,000 1,420,000

(c) Dividends paid (550,000)

NCI share 20% (110,000) (800,000) (910,000)

(d) Issued capital 1,000,000

NCI share 20% 200,000 1,600,000 1,800,000

(e) Revaluation surplus 200,000

NCI share 20% 40,000 300,000 340,000

(f) Fair value adjustment 280,000

NCI share 20% 56,000 - 56,000

Total shareholders' equity 2,240,000

NCI share 20% 448,000 3,798,000 4,246,000

NCI-Memo
353411750.xls

NCI-Memo
 353411750.xls

Chip Ltd group

Consolidated statement of comprehensive income for the year ended 31 December 20X9
Consolidated
$
Profit before tax 1,970,000
Tax expense (430,000)
Profit for the year 1,540,000
Profit attributable to non-controlling interest 122,000
Profit attributable to equity holders of Chip Ltd 1,418,000
Other comprehensive income -
Total comprehensive income 1,540,000
Total comprehensive income attributable to non-controlling interest 122,000
Total comprehensive income attributable to equity holders of Chip Ltd 1,418,000

Chip Ltd group

Consolidated statement of changes in equity for the year ended 31 December 20X9
Issued Revaluation Retained Total NCI CFS
capital surplus earnings PI
$000 $000 $000 $000 $000 $000
Balance at 01/01/X9 1,600 300 1,280 3,180 436 3,616
Profit for the year 1,418 1,418 122
Other comprehensive income - - - ###
Total comprehensive income for the year 1,280 3,180 122 1,402

Cons_Stat
 353411750.xls

Transactions with shareholders

Dividends paid (800) (800) (110) (910)
Balance at 31/12/X9 1,600 300 1,898 3,798 448 2,706

Chip Ltd group

Consolidated statement of financial position extract as at 31 December 20X9
Consolidated
$
Issued capital 1,600,000
Retained earnings 1,898,000
Revaluation surplus 300,000
Total equity attributable to equity holders of Chip Ltd 3,798,000
Non-controlling interest 448,000
Total equity 4,246,000

Cons_Stat