P23352 5 Add Non controlling Interest in Net Income NCINI 21175 Consolidated

# P23352 5 add non controlling interest in net income

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P233,52 5 Add: Non-controlling Interest in Net Income (NCINI) __21,175 Consolidated Net Income for 20x6 P254,70 0 *Net income of subsidiary – 20x6 P 90,000 Amortization of allocated excess – 20x6 ( 14,000 ) P 104,000 Multiplied by: Non-controlling interest % .......... 25 % P 26,000 Less: Non-controlling interest on impairment loss on full- goodwill ( (P19,300 x 25%)* ___4,82 5 Non-controlling Interest in Net Income (NCINI) P 21,175 *this procedure would be not be applicable where the NCI on goodwill impairment loss would not be proportionate to NCI acquired. e. P21,175 – refer to (d) for computations Note: Regardless of the method used (cost or equity) answers for No. 2 (a) to (e) above are exactly the same.

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Problem II A. 1. a. P87,725 Consolidated Net Income for 20x4 Net income from own/separate operations Pill Company P55,00 0 Sill Company 40,000 Total P95,00 0 Less: Non-controlling Interest in Net Income* P 5,775 Amortization of allocated excess 0 Goodwill impairment 1,500 __7,275 Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent………….. P87,72 5 Add: Non-controlling Interest in Net Income (NCINI) __5,775 Consolidated Net Income for 20x4 P93,50 0 b. P5,775 *Net income of subsidiary – 20x4 P 40,000 Amortization of allocated excess – 20x4 ( 0)) P 40,000 Multiplied by: Non-controlling interest % .......... _____15 % P 6,000 Less: Non-controlling interest on impairment loss on full- goodwill (P1,500 x 15%)* _____225 Non-controlling Interest in Net Income (NCINI) P 5,775
*this procedure would be not be applicable where the NCI on goodwill impairment loss would not be proportionate to NCI acquired. c. P93,500 – refer to computation in (a) d. d.1. P75,000. Retained earnings of Parent on the date of acquisition should always be the same with the Consolidated Retained Earnings also on the date of acquisition. d.2 Retained earnings of P Co, 1/1/20x4 P75,000 Add; Net income under cost method [P55,000 + (P9,000 x 85%)] _62,650 P 137,650 Less: Dividends of P Company ___5,00 0 Retained Earnings of P Co, 12/31/20x4 under cost model P 132,650 d.3 Retained earnings of P company (same with Consolidated RE), 1/1/20x4 P75,000 Add; Controlling Interest in CNI (refer to a above) _87,725 P 162,725 Less: Dividends of P Company ____5,00 0 Consolidated Retained Earnings, 12/31/20x4 P 157,725 e. P238,000 2. a. P87,725 Consolidated Net Income for 20x4 Net income from own/separate operations Pill Company P55,00 0

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Sill Company 40,000 Total P95,00 0 Less: Non-controlling Interest in Net Income* P 5,775 Amortization of allocated excess 0 Goodwill impairment 1,500 __7,275 Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent………….. P87,72 5 Add: Non-controlling Interest in Net Income (NCINI) __5,775 Consolidated Net Income for 20x4 P93,50 0 b. P5,775 *Net income of subsidiary – 20x4 P 40,000 Amortization of allocated excess – 20x4 ( 0)) P 40,000 Multiplied by: Non-controlling interest % .......... _____15 % P 6,000 Less: Non-controlling interest on impairment loss on full- goodwill (P1,500 x 15%)* _____225 Non-controlling Interest in Net Income (NCINI) P 5,775 *this procedure would be not be applicable where the NCI on goodwill impairment loss would not be proportionate to NCI acquired.
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