Consolidated SFP

Question 1

Working 1

Answer 1

P - % and date of Acq. of S

A - % and date of Acq. of A

Question 2

Working 2

Answer 2

Net Assets of Sub

Share Capital
Share Premium
Retained Earnings
FV Adjust
FV Depreciation
PUP (sub = seller)

(Post Acq = At Acq - At Reporting)

Question 3

Working 3

Answer 3

Goodwill

Parent Holding at FV
NCI value at Acq.

Less: FV of Net assets at Acq (W2)

=Goodwill to date on Acq.
Less: Impairment

Question 4

W3 - Difference between FV method and proportion of net assets

Answer 4

FV Method = NCI value is the NCI’s FV at ace. (number of shares owned by NCI x Subsidiary share price.

Proportion Method = NCI value is NCI’S % of FV of net assets at Acq (w2)

Question 5

W4 - Non-controlling Interest (NCI)

Answer 5

NCI value at Acq (w3)
NCI Share of post-acq reserves (w2)
LESS: NCI share of impairment (FV method only)

Question 6

W5 - Retained Earnings

Answer 6

100% of Parent’s earning
P’s % share of S post-acq profit
LESS: P’s % Goodwill Impairment
P’s % share of A post-acq profits
LESS: Impairment in Associate
PUP (P or A the seller
Unwinding of the discount

Question 7

Calculate unrealised profit - Inventory

Answer 7

The remaining inventory.

Mark up or Margin
Mark up:

Sale = 125%
COS = 100%
Profit = 25%

Margin

Sales = 100%
COS = 75%
Profit = 25%

Question 8

Calculate unrealised profit - NCA

Answer 8

Carrying value with transfer -
Carrying amount without transfer

= Difference is the unrealised profit

Question 9

IAS 1- SFP

Answer 9

Presentation of Financial Statements/Pro-forma

NCA
PPE (P+S+FV Adjust. - FV Deprec)
Goodwill (w3)
Investment in A (w6)

CA
Inventories (P+S -PUP+Inv in transit)
Receivables (P+S-Intra-group)
Cash (P+S+Cash in transit)

Equity and Liabilities

Equity
Share Capital (P + Unrecorded share exchange)
Share Premium (same as SC)
Group Retained Earning (w5)
NCI (w4)

NCL
Borrowings (P+S+Unrecorded deferred consideration+ unwinding of discout

CL
Payables (P+S-intra-group payable)