15. Group Accounts: Consol SF Performance

Question 1

Consol: CSPL: Basic steps

Answer 1

1. Add all revenues
2. Deduct NCI profit share(s)
3. Adjust for intra-group items

Question 2

Consol: CSPL: Standard workings

Answer 2

W1 Group structure

W2 Consol schedule

W3 NCI

Question 3

Consol: CSPL: Acquisitions part way through the RP

Answer 3

Only consolidate from date of acquisition: Time apportion

Question 4

Consol: CSPL: Treatment: Intra-group trading

Answer 4

Deduct intra group:

1. Sales
2. Purchases

Question 5

Consol: CSPL: Treatment: Inventory PURPs

Answer 5

For any goods sold intra-group are included in closing inventory:

Adjust to lower of cost and NRV

Question 6

Consol: CSPL: Inventory PURP adjustment DE

Answer 6

DR COS of seller (W2)

CR Consol closing inventory
(unrealised profit)

Question 7

Consol: CSPL: Transfers of NCAs process

Answer 7

1. Profit/loss removed for seller (W2)
2. Depn adjusted for seller
   So reflects amount of asset held by group

Question 8

Consol: CSPL: Transfers of NCAs process: If transfer took place in a prev year

Answer 8

Only need to adjust depn

Question 9

Consol: CSPL: Treatment: Intra-group interest/management charges

Answer 9

Cancelled S to P (W2)

Question 10

Consol: CSPL: Treatment: Intra-group dividends: S to P

Answer 10

Reduce investment/finance income in P’s column (W2)

By amount of the div to be paid to P

Question 11

Consol: CSPL: Treatment: Impairment of goodwill: Proportionate method

Answer 11

P’s column of W2

(usually opex)

Question 12

Consol: CSPL: Treatment: Impairment of goodwill: Fair-value method

Answer 12

S’s column (W2)

Question 13

Consol: CSPL: Treatment: Fair value adjustments
PPE
Internally generated intangibles

Answer 13

Include any extra depn/amrt though S’s column (W2)

Question 14

Consol: CSOCE: Additional column

Answer 14

Non-controlling interest

Question 15

Consol: CSOCE: Non-controlling interest b/f calculation: GW imp at FV method

Answer 15

NCI at acq

PLUS

NCI% of S’s post-acquisition movement in NAs up to b/f date

MINUS

NCI% of GW impairment b/f

Question 16

Consol: CSOCE: Non-controlling interest b/f calculation: GW imp at Proportionate method

Answer 16

NCI% of S’s NA at beginning of year

Question 17

Consol: CSOCE: Group retained earnings b/f calculation

Answer 17

100% P’s RE b/f

PLUS

P’s % of S’s post acq RE b/f

MINUS

P’s GW imp b/f

Question 18

Consol: CSOCE: Where to find total comprehensive income?

Answer 18

CSPL

Question 19

Consol: CSOCE: Total comprehensive income: Where to put profit attributable to P’s shareholders?

Answer 19

Retained earnings column

Question 20

Consol: CSOCE: Total comprehensive income: Where to put profit attributable to NCI?

Answer 20

NCI column

Question 21

Consol: CSOCE: Dividends treatment: When P pays a dividend

Answer 21

Reduces group RE

Question 22

Consol: CSOCE: Dividends treatment: When S pays a dividend

Answer 22

Reduces NCI by NCI’s %

Question 23

Consol: CSOCE: Treatment: Acquisitions part way through a RP: (c/f) Calculation

Answer 23

b/f

PLUS

profit for the year

MINUS

Divs paid

PLUS

Added on acquisition
(Prop or FV)

Question 24

Consol: CSOCE: UK GAAP difference: goodwill

Answer 24

Will be annual P&L GW amort charge

Question 25

Consol: CSOCE: UK GAAP difference: NCI

Answer 25

Not having FV method may cause differences