Consideration Transferred

NCI (400,000*20)
Total
FVNAA

Goodwill

No. 1
Assets- P
Assets- S (FV)
Goodwill
Conso Asset

No. 2
OS- P
RE- P
NCI
Conso SHE
Consideration Transferred/ Acq Cost) 430,000.00
NCI (400,000*20) 80,000.00
510,000.00
SHE 350,000.00
Inc in A 50,000.00 400,000.00
110,000.00

1,570,000.00
Assets- S (FV) 800,000.00
110,000.00
Conso Asset 2,480,000.00

1,000,000.00
250,000.00
80,000.00
Conso SHE 1,330,000.00
 Sugar Co. Cheese Co.
Cash 392,000.00 316,000.00
Inventory 420,000.00 60,000.00
Investment in subsidiary (at cost) 300,000.00
Equipments, net 560,000.00 120,000.00
Total Assets 1,672,000.00 496,000.00

Accounts Payables 292,000.00 120,000.00

Share Capital 940,000.00 200,000.00
Retained Earnings 440,000.00 176,000.00
Total Liabilities and SHE 1,672,000.00 496,000.00

Income 1,000,000.00 200,000.00

Expense - 400,000.00 - 120,000.00
Profit 600,000.00 80,000.00

1. How much is the net change in the fair value of the subsidiary’s net assets since the acquisition date?
2. What amount of goodwill is reported in the December 31, 20x1 consolidated financial statements?
3. What amount of goodwill is attributed to non-controlling interests on December 31, 20x1?
4. How much is the consolidated total assets on December 31, 20x1?
5. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 20x1?
6. How much is the consolidated retained earnings on December 31, 20x1?
7. How much is the consolidated total equity on December 31, 20x1 attributed to the Parent and NCI?
8. How much is the consolidated profit in 20x1?
9. How much is the consolidated profit attributed to the following Parent and NCI?

No. 1 Date of Acq

January 1, 20x1 Depreciation
Net Assets at Carrying Amount 296,000.00
FVA- Inv (92k-124k) 32,000.00 32,000.00
FVA- Eqp (160k-192k) 32,000.00 8,000.00
FVNA 360,000.00 40,000.00

Change in FV of Subsidiary's NA 40,000.00 Increase

No. 2

Consideration Transferred/ Acq Cost 300,000.00

NCI (360k x 20%) 72,000.00
372,000.00
FVNAA (DA) - 360,000.00
Goodwill 12,000.00

No. 3

Zero since NCI is measured at proportionate share

Parent NCI
CT 300,000.00 72,000.00
FVNAA 288,000.00 72,000.00
Goodwill 12,000.00 -

No. 4
Parent Subsidiary
Cash 392,000.00 316,000.00
Inventory 420,000.00 60,000.00
Equipment 560,000.00 120,000.00
Goodwill 12,000.00
Consolidated Asset

No. 5.

FVNA- Subsidiary, Dec 31 400,000.00

NCI % 20%
NCI-NAS 80,000.00

NCI, Beg 72,000.00

NCI- NIS (share in NI of Sub) 8,000.00
Less: Share in Div -
NCI-NAS 80,000.00 Alternatively

No. 6

Parents RE 12/31 440,000.00

Share in the Net changes in NA-S 32,000.00
Consolidated RE 472,000.00

No. 7
Share Capital- P 940,000.00
Consolidated RE 472,000.00
NCI- NAS 80,000.00
Conso SHE 1,492,000.00

No.8
Parent Subsidiary
Profit 600,000.00 80,000.00
FVA - 40,000.00
Consolidated Profit 600,000.00 40,000.00

No. 9

Parent (NI-P + %NI-S) 632,000.00

NCI-NIS (NI-S x %NCI) 8,000.00
640,000.00
ssets since the acquisition date?
idated financial statements?
ecember 31, 20x1?

diary on December 31, 20x1?

buted to the Parent and NCI?

December 31, 20x1

376,000.00
-
24,000.00
400,000.00
Total
372,000.00
360,000.00
12,000.00

FVA Total
708,000.00
480,000.00
24,000.00 704,000.00
12,000.00
1,904,000.00

Total
680,000.00
- 40,000.00
640,000.00
 Total Parent Sub
NI 480,000.00 400,000.00 80,000.00
FVA- INV (inc) - 10,000.00 - 10,000.00 Sold
FVA- Equip (inc) - 16,000.00 - 16,000.00 Depreciation for 5 yrs
CONSO PROFIT 454,000.00 400,000.00 54,000.00

CNI- Parent 437,800.00

NCI-NIS 16,200.00
454,000.00
DS
US
DS

Sales
Inter Co
Conso Sales

COGS
Interco- Sales
RP-BI
UP- EI
CONSO COGS
 Sales
Gross Profit
Opex
Ending Inventories
GP GPR Dividend received from affiliate
192,000.00 30% RP-BI 42,000.00 dividend from non-affiliate
168,000.00 35% UP- EI 26,950.00
87,500.00 20% UP- EI 12,600.00 NI

NI

Parent Sub Total

3,850,000.00 1,680,000.00 5,530,000.00
- 437,500.00 - 480,000.00 - 917,500.00 NI
4,612,500.00 Dividends
RP-BI
Parent Sub Total UP-EI
1,946,000.00 1,176,000.00 3,122,000.00 Adj NI
- 437,500.00 - 480,000.00 - 917,500.00
- 42,000.00 - 42,000.00 CNI- P
12,600.00 26,950.00 39,550.00 NCI-NIS
2,202,050.00
Greek Deli
3,850,000.00 1,680,000.00
1,904,000.00 504,000.00
770,000.00 280,000.00
336,000.00 280,000.00
126,000.00 -
- 70,000.00

1,134,000.00 224,000.00
70,000.00
1,134,000.00 294,000.00

Greek (P) Deli (S) CNI

1,134,000.00 294,000.00 1,428,000.00
- - -
42,000.00 - 42,000.00
- 12,600.00 - 26,950.00 - 39,550.00
1,163,400.00 267,050.00 1,430,450.00

1,350,335.00
80,115.00
1,430,450.00
 US RUL For the Year Prorated
SP 168,000.00 33,600.00 22,400.00
CA 210,000.00 42,000.00 28,000.00
U Gain/Loss - 42,000.00 5 yrs - 8,400.00 - 5,600.00 May to Dec

DS
SP 690,000.00 86,250.00 28,750.00
CA 600,000.00 75,000.00 25,000.00
U Gain 90,000.00 8 yrs 11,250.00 3,750.00 Sep to Dec

ABC XYZ CNI

NI 720,000.00 310,000.00 1,030,000.00
Share in Div- S - 84,000.00 - 84,000.00
UG/UL - 90,000.00 42,000.00 - 48,000.00
RG/ RL 3,750.00 - 5,600.00 - 1,850.00
Adj NI 549,750.00 346,400.00 896,150.00

CNI-P 826,870.00
NCI-NIS 69,280.00 Carrying Value

Common Stock 1,140,000.00 CA- Sub, April 30 210,000.00

RE 980,000.00 Dep May-Dec - 28,000.00 182,000.00
NA- S (DA) 2,120,000.00
CA-P, August 30 600,000.00
NCI, Beg 424,000.00 Dep Sep-Dec - 25,000.00 575,000.00
NCI-NIS 69,280.00 Consolidated Equipment, Net 757,000.00
Share in Div- S - 21,000.00
NCI-NAS 472,280.00
 US
SP 168,000.00 5.00 22,400.00
CA 210,000.00 5.00 28,000.00 182,000.00
Gain/Loss - 42,000.00 - 5,600.00

DS
SP 690,000.00 8.00 28,750.00
CA 600,000.00 8.00 25,000.00 575,000.00
Gain 90,000.00
Consolidated Asset

Asset- P @ BV x
Asset- S @ FV x
Goodwill x
Conso Asset x

Goodwill

Consideration Transferred/ Acq Cost x

NCI x
PHEI x
Total x
Less: FVNAA x
Goodwill/ (Gain in BP) x

Non Controlling Interest

Note: the FV of the NCI can never be less than the Proprtionate Share of FVNAA

NCI at Proprotionate Share FVNAA* NCI%

NCI at FV Given or Gross Up the Acquisition cost

Non Controlling Interest in the Net Asset of Subsidiary

NCI Beg x
Share in NI/ (L) x
Share in Div (x)
NCI-NAS x

Or

FVNAA at year end x

NCI % x
NCI-NAS x

Consolidated Net Income

P S Total
Net Income x x x
Share in Div- S (x) (x)
Gain in BP x x
FVA (Overstated Asset) x x
FVA (Undertstated Asset) (x) (x)
Adjusted net Income x x x

NI-P x
 Share in NI-S x
Imp of Goodwill if any (x)
CNI- Parent x

NCI Share in NI of Sub x

Share in Imp of Goodwill if any (x)
NCI-NIS x

CNI- P x
NCI-NIS x
Consolidated Net Income x

Consolidated Retained Earnings

RE- Parent, Beg x

CNI-P x
Div-Parent (x)
Conso RE x

Consolidated SHE

OS- Parent x
SP- Parent x
CRE- Parent x
NCI-NAS x
Cons SHE x

Intercompany Transactions
Consolidated Sales
P S Total
Sales x x x
Inter Co (x) (x) (x)
Conso Sales x x x

Consolidated Cost of Goods Sold

P S Total
COGS x x x
Interco- Sales (x) (x) (x)
RP-BI (x) (x) (x)
UP- EI x x x
Conso COGS x x x

Realized Profit- Beg Inv GPR x Beg Inv

Unrealized Profit- End GPR x End inv
Unrealized Gain/ Loss Gain or Loss on Sale
Realized Gain/ Loss Gain or Loss/ Remaining Useful Life

Notes:
+ EI -COS +Income
-EI +COS -Income

Consolidated Income
Note: the effect of Intercompany transactions dependends if Upstream or Downstream and if Gain or Loss
P S Total
NI x x x
Share in Div- S (x) (x)
DS: RP- Beg Inv x (x)
DS: UP- End Inv (x) x
US: RP- Beg Inv x x
US: UP- End Inv (x) (x)
DS: UG/ UL- Date of Sale only (x)
DS: RG/L x
US: UG/ UL- Date of Sale only (x)
US: RG/L x
Adjusted Net Income x x x

CNI- Parent NI-P + (% x NI-S)

NCI-NIS NCI x NI-S

Cost Method
Intially @ Cost
Subsequently: NCA @ Cost unless shares are sold or additional shares are purchased
Div Received - Income

Equity Method
Intially @ Cost
Subsequently: Adjusted to account for the share of the changes subsidiary's Net Asset/Equity (P/L)
Dividends- return of Investment (reduces the value of Investment in Subsidiary)
and if Gain or Loss

/Equity (P/L)