2002 before consolidation

Balance sheet 2002 before consolidation ISA BELLA ISA+BELLA

tangible fixed assets 300 100 400
Financial assets 240 0 240
Current assets 600 100 700
Total assets 1140 200 1340
Equity 500 150 650 If we look at 2002 ISA's net incom
Current liabilities 640 50 690 It will be important later on
Total liabilities 1140 200 1340

P&L ISA BELLA ISA+BELLA

Sales 2000 300 2300
Cost of sales -1500 -200 -1700
Contribution 500 100 600
G&A expenses -100 -10 -110
Other operations income/expenses 0 0 0
Financial Income/expenses -50 0 -50
Tax -100 -40 -140
Net Income 250 50 300

2002 after consolidation

Balance sheet 2002 before consolidation ISA BELLA ISA+BELLA Adjustments Consolidation
Goodwill 160 160
tangible fixed assets 300 100 400 400
Financial assets 240 0 240 -240 0
Current assets 600 100 700 700
Total assets 1140 200 1340 1260
Equity 500 150 650 -110 540
NCI 0 0 0 30 30
Current liabilities 640 50 690 690
Total liabilities 1140 200 1340 -80 1260

P&L ISA BELLA ISA+BELLA Adjustments Consolidation

Sales 2000 300 2300
Cost of sales -1500 -200 -1700
Contribution 500 100 600
G&A expenses -100 -10 -110
Other operations income/expenses 0 0 0
Financial Income/expenses -50 0 -50
Tax -100 -40 -140
Net Income 250 50 300
Share of NCI 0 0 0 -10 -10
Share of group 250 50 300 -10 290

2003 before consolidation

Balance sheet 2003 before consolidation ISA BELLA ISA+BELLA
tangible fixed assets 350 100 450
Financial assets 240 240
Current assets 650 200 850 200 = 100+50+50
Total assets 1240 300 1540
Equity 600 200 800
Current liabilities 649 100 749
Total liabilities 1249 300 1549

P&L ISA BELLA ISA+BELLA

Sales 1900 350 2250
Cost of sales 1700 250 1950
Contribution 200 100 300
G&A expenses 50 10 60
Other operations income/expenses
Financial Income/expenses 25 25
Tax 25 40 65
Net Income 100 50 150

2003 After consolidation

Balance sheet 2003 before consolidation ISA BELLA ISA+BELLA Adjustments Consolidation
Goodwill 160 160
tangible fixed assets 350 100 450 450
Financial assets 240 240 -240 0
Current assets 650 200 850 850
Total assets 1240 300 1540 -80 1460
Equity 600 200 800 -120 680
NCI 40 40
Current liabilities 649 100 749 749
Total liabilities 1249 300 1549 -80 1469

P&L (31/12/03 - EUR M) ISA BELLA ISA+BELLA Adjustments Consolidation

Sales 1900 350 2250 2250
Cost of sales -1700 -250 -1950 -1950
Contribution 200 100 300 300
G&A expenses 50 10 60 60
Other operations income/expenses 0
Financial Income/expenses 25 25 25
Tax 25 40 65 65
Net Income 100 50 150 150
Share of NCI 100 50 150 -10 140
Share of group 10 10
 look at 2002 ISA's net income, we know that Equity is composed by 250 of share capital and 250 of retained earnings
l be important later on

Calculated Goodwill : Total amount of acquisition - Net assets of acquired company - Adjustment throught fair value

Financial assets that concerns subsidiaries doesn't appear anymore, it would be dubble counting otherwise

The -110 is composed by share equity of BELLA (100) and 20% of his net income because ISA owns only 80% => 20% of 50 = 10
composed by 20% of the share equity (0,2*100)+ 20% of the net incomes of BELLA (0,2*50)

Once again, 20% of the net income of BELLA belongs to ISA NCI's and 20% of 50 is 10
= 100+50+50 The previous amount + The 50 Of Net Income of 2003

Financial assets that concerns subsidiaries doesn't appear anymore, it would be dubble counting otherwise

(Just the sum of everything above)

Here the 200 are divided in 3 parts (Same explanation) 100+50+50, You find 120 by doing the 100+ 20% Of 50+ 20%
Remember that the 200 of BELLA are divided in 3 Parts, 100(Equity), 50 (Net income of 2002) and 50 (Net Income o
ISA acquired 80%, so you remove the 20% left. 20+10+10

It's the same principle as last year, you have to incorporate in the NCI of ISA, the 20% of the Net income from BELLA
 Same for BELLA , 50 of retained earnings so 100 of share capital

hrought fair value : 240m-80m-0m=160m

only 80% => 20% of 50 = 10

counting otherwise

ng the 100+ 20% Of 50+ 20% Of 50

2002) and 50 (Net Income of 2003)

the Net income from BELLA