Consolidated SFP Calculations Flashcards
How to calculate full goodwill on acquisition of subsidiary?
Subsidiary’s net assets at acquisition
Calculate subsidiary’s net assets at acquisition?
Subsidiary’s share capital + subsidiary’s RE at acquisition
Calculate NCI share of Subsidiary post acquisition figure?
NCI percentage * (Retained earnings of subsidiary - Retained earnings at acquisition)
Calculate total non-controlling interest for a future date?
NCI at acquisition (Fair value) + NCI share of subsidiary’s post acquisition figure
What happens with investment at consolidation?
Is void
How to calculate other assets?
Parent’s figure + subsidiary’s figure
How to calculate share capital?
Parent’s equity share capital
How to calculate retained earnings?
All of parent’s retained earnings + Parent’s share of Subsidiary’s retained earnings post-acquisition
Parent’s share of subsidiary’s retained earnings post-acquisition
Parent’s % * (subsidiary’s retained earnings - subsdiary’s retained earnings at acquisition)
How to calculate liabilities?
Parent’s figure + subsidiary’s figure
How to calculate partial goodwill?
FV of consideration + NCI at acquisition (NCI % * subsidiary’s net assets at acquisition) - Subsidiary’s net assets at acquisition
Calculate subsidiary’s net assets at post-acquisition?
(Equity shares at reporting date + retained earnings at reporting date) - (Equity shares at reporting date + retained earnings at reporting date)
How to calculate when subsidiary sold goods to parent at $120000 based on a mark-up of 20%. Where half of goods remain in inventory at year end? (PURP)
Revenue: 1/2 * 120 = 60
Profit: 60 * (20 (markup %) / 120 (100% + markup %)) = 10
What happens with PURP?
Deducted from value of net assets
