Eliminations: Steps: ORE

Sales/ CGS. AR/AP, Rent 1) Calcuation, allocate and amort AD +NI

inc/exp, Interco divid (R/E 2) intercom eliminations +adj -Dividends
but not on I/S), Due to/ 3) Calculate CNI CRE
from, 4) Calculate CRE
5) Calculate NCI
6) Prepare Consolidated FS
3 Calculate CNI (cost method)
Price paid FV of NiA Share price
(Goodwill P + S prop) (Goodwill P only) (Goodwill P + S calc)

[A] P NI P NI P NI
- interco dividends - interco dividends - interco dividends
- goodwill impairment - p's share of goodwill impair
+/- downstream UnR(cy) + R +/- downstream UnR(cy) + R +/- downstream UnR(cy) + R

[B] + + +
S NI S NI S NI
- amort of AD - amort of AD - amort of AD
- goodwill impairment
+/- upstream UnR(cy) + R +/- upstream UnR(cy) + R +/- upstream UnR(cy) + R

[C] - sub's share goodwill impair

CNI = [A] + [B] = [A] + [B] = [A] + [B] + [C]
P's share of CNI = [A] + 80% [B] = [A] + 80% [B] = [A] + 80% [B]
S's share of CNI = 20% [B] = 20% [B] = 20% [B] + [C]
4 Calculate CRE (cost method)
Price paid FV of NiA Share price
(Goodwill P + S prop) (Goodwill P only) (Goodwill P + S calc)
Opening Closing
[A] P RE P RE P RE
- Acc goodwill imp - P's share of Acc goodwill imp
+/- downstream UnR(cy + py) +/- downstream UnR(cy + py) +/- downstream UnR(cy + py)

[B] + + +
S RE S RE S RE
- S RE @ acq - S RE @ acq - S RE @ acq
- Acc amort AD - Acc amort AD - Acc amort AD
- Acc goodwill imp +/- upstream UnR(cy + py) +/- upstream UnR(cy + py)
+/- upstream UnR(cy + py)
CRE = [A] + 80% [B] = [A] + 80% [B] = [A] + 80% [B]
5 Calculate NCI
Price paid FV of NiA Share price
(Goodwill P + S prop) (Goodwill P only) (Goodwill P + S calc)

[B] Sub RE [B] Sub RE [B] Sub RE

+ Sub SC + Sub SC + Sub SC
+ UnAmort AD + UnAmort AD + UnAmort AD
+/- upstream UnR(cy + py) +/- upstream UnR(cy + py) +/- upstream UnR(cy + py)
+ UnImp Goodwill
+ UnImp Goodwill Sub
NCI = 20% [B] = 20% [B] = 20% [B]+100%Unimp GW Sub