Ch19 - Consolidated SoPL

Question 1

PURP - Goods sold between companies

Answer 1

If S sells to P: (Profit originates in S so remove from NCI)

Remove sale value of goods (Dr Revenue (-), Cr CoS (-)
Remove PURP Profit: Dr CoS (+), Cr NCI (-)

If P sells to S

Remove sale value of goods (Dr Revenue (-), Cr CoS (-)
Remove PURP Profit: Dr CoS (+),

Question 2

Goodwill

Answer 2

Dr CoS, or account given (+), Cr NCI (-) FV Method only

Ignore any Consideration at acquisition - only throughout the year

Question 3

Depreciation

Answer 3

Dr CoS (+). Cr NCI (-)

Question 4

NCI - Working

Answer 4

Subsidiary’s PAT
Less:
Depreciation
PURP if S is Seller
Goodwill Impairment (FV method only)

Total:

NCI% of Other Comp Income (from SoPL - extract)

Total Inc OCI:

Question 5

After Consolidated PAT

Answer 5

Take NCI working from above and do:

Attritutable to:
NCI - Figure above
Owner - Balancing figure

Question 6

Investment Income and Dividends Paid

Answer 6

Remove and Ignore from Consolidated if intragroup related. CONFIRM

If from associate keep - remove

Question 7

Transfer of Asset P to S

Answer 7

Use table as per SoFP. ignore bottom carrying value as that’s the asset

Confirm P transfer to S or S to P on signage but:

If P transfers to S, remove the extra value gained on asset - Dr Cos +
Depreciation - Dr Cos -, Cr NCI +

Question 8

Remember for Revaluation Surplus’

Answer 8

IF it says increased by $1m, this is usually included in the SoOCI already, so don’t re add into the Consolidated SoPL

Question 9

FV Adj Inventory left but increase

Answer 9

Dr Cos +, Cr NCI -

Question 10

Contingent Liability