2 Non controlling interest partial goodwill 123120x4 P 92160 Add Non

2 non controlling interest partial goodwill 123120x4

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2 0 Non-controlling interest (partial-goodwill, 12/31/20x4………………………….. P 92,160 Add: Non-controlling interest on full goodwill , net of impairment loss, 12/31/x4: [(P15,000 full – P12,000, partial = P3,000) – P750 impairment loss 2,25 0 Non-controlling interest (full-goodwill), 12/31/20x4…………….. P 94,410 f. Consolidated SHE:
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Stockholders’ Equity Common stock, P10 par P 600,000 Retained earnings 490,440 P’s Stockholders’ Equity / CI – SHE, 12/31/20x4 P1,090,440 NCI, 12/31/20x4 ___94,410 Consolidated SHE, 12/31/20x4 P1,184,85 0 12/31/20x5: a. CI-CNI – P258,240 Consolidated Net Income for 20x5 Net income from own/separate operations P Company P192,0 00 S Company 90,00 0 Total P282,0 00 Less: Non-controlling Interest in Net Income* P16,56 0 Amortization of allocated excess (refer to amortization above) 7,200 Goodwill impairment (impairment under full-goodwill approach) 0 23,7 60 Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent………….. P258,2 40 Add: Non-controlling Interest in Net Income (NCINI) 16,5 60 Consolidated Net Income for 20x5 P274,8 00 b. NCI-CNI – P16,560 *Non-controlling Interest in Net Income (NCINI) for 20x5 Net income of S Company P 90,000 Less: Amortization of allocated excess /
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goodwill impairment for 20x5 (refer to amortization table above) 80, 400 P 82,800 Multiplied by: Non-controlling interest % .......... 2 0% Non-controlling Interest in Net Income (NCINI) for 20x5 P 16,560 c. CNI, P274,800 – refer to (a) d. On subsequent to date of acquisition, consolidated retained earnings would be computed as follows: Consolidated Retained Earnings, December 31, 20x5 Retained earnings - P Company, January 1, 20x5 (cost model P484,8 00 Adjustment to convert from cost model to equity method for purposes of consolidation or to establish reciprocity:/P’s share in adjusted net increased in subsidiary’s retained earnings: Retained earnings – Subsidiary, January 1, 20x5 P 144,00 0 Less: Retained earnings – Subsidiary, January 1, 20x4 120,0 00 Increase in retained earnings since date of acquisition P 24,000 Less: Amortization of allocated excess – 20x4 13,2 00 P 10,800 Multiplied by: Controlling interests % ................... 8 0% P 8,640 Less: Goodwill impairment loss (full-
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goodwill), net (P3,750– P750)* or (P3, 750 x 80%) 3,0 00 5,6 40 Consolidated Retained earnings, January 1, 20x5 P 490,44 0 Add: Controlling Interest in Consolidated Net Income or Profit attributable to equity holders of parent for 20x5 258,2 40 Total P748,6 80 Less: Dividends paid – P Company for 20x5 72,0 00 Consolidated Retained Earnings, December 31, 20x5 P676,6 80 *this procedure would be more appropriate, instead of multiplying the full-goodwill impairment loss of P3, 750 by 80%. There might be situations where the controlling interests on goodwill impairment loss would not be proportionate to NCI acquired. e. Non-controlling interest (partial-goodwill), December 31, 20x5 Common stock – S Company, December 31, 20x5…… P 240,00 0 Retained earnings – S Company, December 31, 20x5 Retained earnings – S Company, January 1, 20x5 P144, 000 Add: Net income of S for 20x5 90, 000 Total P234, 000 Less: Dividends paid – 20x5 48, 000 186,0 00 Stockholders’ equity – S Company, December P
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31, 20x5 426,00 0 Adjustments to reflect fair value - (over) undervaluation of assets and liabilities, date of acquisition (January 1,
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