Chapter 10: Group Accounts - The consolidated SFP

Question 1

Share capital in consolidated statements

Answer 1

Parent company only

Question 2

Investment in the subsidiary

Answer 2

Never appears in the consolidated set of accounts. Replaced by net assets of sub and goodwill

Question 3

Goodwill - amortised or impairment

Answer 3

impairment

Question 4

Calculating goodwill

Answer 4

Consideration transferred

+ NCI at acquisition
-100% of net assets at acq date

= goodwill at acquisition

• goodwill impairment

= goodwill in SOFP

Question 5

group retained earnings

Answer 5

Retained earnings of the parent plus any group share of the post acquisition retained earnings from the sub

Question 6

NCI

Answer 6

Non-controlling interest

Sub net assets at year end * NCI%

Share capital x NCI%
Retained Earnings x NCI%

= NCI