Академический Документы
Профессиональный Документы
Культура Документы
2,900
1,800
200
50
500(6/12)
300(6/12)
70(6/12)
X(6/12)
1,300
220(6/12)
Add/(minus)
$'000
(640)
(640)+10,000, Add profit step6, less depr step 6
3,340+(116)
1,600
X
X
180(6/12)
X(6/12)
Total
$'000
24,630
(14,595)
10,035
(3,150)
(1,950)
(215)
30
4,750
(1,410)
3,340
3,224
116
1,690
X
5,030
5,030+(152)
$'000
12,750
(900)
4,878
16,728
4,878
152
Step 1: Parent amounts -Put in the full amounts of all income and expenses for parent
Step 2: Subsidy amounts
Calculate number of months subsidy is owned by parent
Date Subsidy Acquire
e.g 1 July 20X4
Statement to be made
e.g. 31 Dec 20X4
Number of months
6 months
Take amounts of Subsidy and times it by (number of months/12) e.g. (6/12). If a full amount is made
after acquisition put in full amount.
Step 3: Intragroup Sales
Remove the sale by sale price not cost of goods. E.g. 640,000 from Revenue
P to S and S to P
and Cost of Sales
Increased Cost of Sales by Unrealised Profit 10,000
P to S and S to P
Decrease NCI by NCI's share of unrealized profit
S to P
Unrealised profit = ($ amount left in inventory) X (markup%/100% + markup%) = 60,000X
(20%/120%)
Or = ($ amount left in inventory) X (profit from goods sold/ cost of total goods)
Or = ($ profit from goods sold) X (fraction left in inventory)
Step 4: Intra Group Finance cancel interest from both Finance income and finance cost. 800,000 X
6/12 X 5%
Step 5: Fair Value Increase in Assets If subsidy's assets get an FV adjustment (upwards), any
additional depreciation must be charged add to cost of sales and (less) to NCI. If sold add to NCI. E.g.
200,000/20 years = 10,000
Step 6: Transfer of Non-current Asset (not in example)
Expenses must be increased by any profit on transfer. Sometimes in Cost of Sales.
Decrease any additional depreciation from carrying value. Decrease expense by additional
depreciation. Sometimes Cost of Sales.
Step 7: Dividends from subsidy to parent
Calculate parent's share and subsidy's share. Increase NCI by subsidy's share.
If dividends from parent to subsidy, dividends are cancelled and dividends paid to NCI are replaced by
allocation to NCI by their share of %.
Step 8: Calculating Non Controlling Interest
Subsidy Profit for the year (taken from subsidy's profit statement) X 6/12
Less: Unrealised Profit (step 3)
Less: Disposal Profit of non-current Asset by subsidy
Add: Additional Depreciation following disposal of asset by subsidy (step 5)
Less: Additional Depreciation from FV increase (step 5)
Add: subsidy's share of dividends (step 7)
Multiply by parent's share in subsidy e.g. 40%
Profit Attributable to Non Controlling Interest
PFtY
305
(10)
(X)
X
(5)
X
290
116
TCI
395
(10)
(X)
X
(5)
X
380
152
Assets
Non-current Assets
P,P, and E
Brand Name
Goodwill Step 5
Investment in subsidy
Investment in Associate
Current Assets
Inventory
Owed to Parent Step 1
Receivables
Cash in Transit Step 1
Cash and equivalents
Parent
$'000
Subsidy
$'000
50,000
30,000
-
40,000
5,000
-
3,000
8,000
10,000
7,000
16,000
2,000
Associate
$'000
Add/(minus)
$'000
Total
$'000
90,000
5,000
6,734
0
S12,000 +S8(X)
S1(10,000)
Add: both P and S
X
Add: both P and S
13,000
0
23,000
X
2,000
X
(X)
0 (as per
eg)
Total Assets
Equity and Liabilities
Equity
Ordinary Shares
Revaluation Surplus
Retained Earnings
139,734
45,000
12,000
26,000
Only P's
Non-controlling Interest
Unless it's
X/(X)
45,000
12,000
42,988
S713,400
13,400
Total Equity
113,388
Current Liabilities
Trade Payables
Owed to subsidy Step 1
Contingent consideration
10,000
8,000
7,000
17,000
0
9,346
139,734
Share Exchange
(# of shares) times
(# of shares exchange)/(# of shares exchanged)
times Market Value X acquired % add: loan notes
Step: 6 Post Acquisition share to P and NCI
25,000
5,000
6,000
36,000
5,000
X
(X)
41,000
20% NCI share
(41,000X20%)
Balancing
NCI FV
8,200
800
9,000
Revaluation
Reserve
Retained Earnings
Less: Depreciation
after FV of asset
revalue
Less: Asset
overstated
Add: Asset
understated
Closing
(Opening)
Total
5,000
28,000
(5,000)
(6,000)
0
22,000
(X)
(X)
X
22,000
80% Majority to RE
20% NCI
(22,000X80%)
17,600
Less: Impairment 80% (X)
Add: dividends to P
X
To Retained earnings 17,600
(22,000X20%) 4,400
Less: imp X 20% (X)
Less: prov of UP (X)
Add: dividents to S X
To NCI
4,400