Unit 11 - Grp Rep - Consol Fin Stat

Journals 1 share capital s ltd retained profits s ltd

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Unformatted text preview: against Cost of Investment 20% transferred to Non-controlling Interest 19 Example 1 - Solution (2) Consolidation Adj. Journals 1. Share capital (S Ltd) Retained profits (S Ltd) Goodwill Investment in S Ltd (H Ltd) FV of NCI (at acquisition date) 2. Retained profits (S Ltd) ($1,000- $500) Consolidated R/P ($500x80%) Non-controlling interests ($500x20%) DR 3,000 500 1,250 CR A/C eliminated 3,800 950 500 400 100 (Recognition of the share of postacquisition profits of S Ltd) 20 Example 1 - Solution (3) Consolidation Worksheet Fixed Assets Investment in S Ltd Current Assets Goodwill H Ltd $’000 4,000 3,800 2,400 S Ltd $000 3,200 0 1,000 Dr 1,250 (1) 10,200 Ordinary Share Capital Consolidated Retained Profits Elimination 8,000 1,900 9,900 4,200 3,000 3,000 (1) 500 (1) 1,000 500 (2) 4,000 Current Liabilities 200 4,200 Group ’000 7,200 3,800 0 (1) 3,400 1,250 11,850 8,000 400 (2) 2,300 10,300 950 (1) 100 (2) Non-controlling Interests 300 10,200 Cr 5,250 1,050 500 5,250 11,850 Slide no.21 Example 1 - Solution Consolidated Statement of F/P at 31 December 20X1 Fixed Assets Goodwill Current Assets Current Liabilities Net Assets Ordinary Share Capital Consolidated Retained Profits Non-controlling Interests Equities $000 7,200 1,250 3,400 11,850 500 11,350 8,000 2,300 10,300 1,050 11,350 22 Example 1 - Solution H Ltd Group Consolidated Income Statement for the year ended 31 December 20X1 $000 Turnover (10,280 + 4,500 x 6/12) 12,530 Cost of sales (6,820 + 3000 x 6/12) (8,320) Gross p...
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This document was uploaded on 04/03/2014.

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