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F14
F14
Impairment loss on goodwill ( - ) ( - ) ( - ) Consolidated profit 400,000 132,000 532,000 Step 7: Profit or loss attributable to o
Net assets at carrying amounts 200,000 270,000 Fair value adjustments at acquisition date - - Subsequent depreciation of FVA
p 7: Profit or loss attributable to owners of pare Profit or loss attributable to owners of parent and NCI Owners of parent NCI Consoli- d
- - Subsequent depreciation of FVA NIL - Unrealized profits (Upstream only) NIL - Subsidiary's net assets at fair value 200,000 270,000 70,0
Owners of parent NCI Consoli- dated Parent's profit before FVA (Step 6) 400,000 N/A 400,000 Share in Sub.’s profit before FVA (c) 99,00
at fair value 200,000 270,000 70,00 0 Step 3: Goodwill computation Consideration transferred (cost of investment in sub.) 180,000 Non-
Sub.’s profit before FVA (c) 99,000 33,000 132,000 Depreciation of FVA (Step 6) ( - ) ( - ) ( - ) Share in impairment loss on goodwill ( - ) ( - )
investment in sub.) 180,000 Non-controlling interest in the acquiree (200K x 25%) 50,000 Previously held equity interest in the acquire - T
pairment loss on goodwill ( - ) ( - ) ( - ) Totals 499,000 33,000 532,000 (c) Shares in Sub.’s profit before FVA (Step 6 ) – (132,000 x 75%); (1
ld equity interest in the acquire - Total 230,000 Fair value of net identifiable assets acquired (200,000) Goodwill 30,000 Step 4: Non-con
FVA (Step 6 ) – (132,000 x 75%); (132,000 x 25%) SUMMARY OF ANSWERS TO REQUIREMENTS: a. NCI in the net assets = 80,000 (Step 4) b
Goodwill 30,000 Step 4: Non-controlling interest in net assets Sub.'s net assets at fair value – Dec. 31, 20x1 (Step 2) 270,000 Multiply by:
the net assets = 80,000 (Step 4) b. Consolidated retained earnings = 340,000 (Step 5) c. Consolidated profit = 532,000 (Step 6) Attributab
0x1 (Step 2) 270,000 Multiply by: NCI percentage 25% Total 67,500 Add: Goodwill to NCI net of accumulated impairment losses - Non-c
ofit = 532,000 (Step 6) Attributable to owners Attributable to owners of parent = of parent = 499,000 (Step 7) Attributable to NC Attrib
ulated impairment losses - Non-controlling interest in net assets – Dec. 31, 20x1 67,500 Step 5: Consolidated retained earnings Parent's
Step 7) Attributable to NC Attributable to NCI = 33,000 (Step 7) 4. Solutions: Step 1: Analysis of effects of intercompany transaction Requ
lidated retained earnings Parent's retained earnings – Dec. 31, 20x1 140,000 Consolidation adjustments: (a) Parent's share in the net chan
: (a) Parent's share in the net change in Sub.'s net assets 52,500 Unrealized profits (Downstre