CSPL

Question 1

What form does CSPL take? (3 steps)

Answer 1

1. combine 100% of income and expenses from P+S since acquisition (shows control)
2. after PFTY apportion between P and NCI
3. make adjustments

Question 2

What is W2 and how do you start (CSPL)

Answer 2

Consolidation schedule:

Columns- 100% P, adjustment, 100% each sub (TA), adjustment, offsetting adj, total

Rows- Rev, COS, minus other income, Opex, Finance income, FC and tax (leave gaps between)

Question 3

What is W3? What is the final step (CSPL)

Answer 3

NCI: NCI% x S’s PFY

Put into CSPL and add two lines under PFTY- attributable to P and NCI

Question 4

List three offsetting adjustments and treatment (CSPL)

Answer 4

Intragroup trading- remove from Rev and add to COS
Intragroup Management- remove from other income and add to OPEX
Intagroup Interest- remove from FI and add to FC

Question 5

List 5 single line adjustments and treatment (CSPL)

Answer 5

1. Inventory trade- Remove PURP from COS (p column if p seller etc)
2. NCA trade- Remove PURP from OPEX (p column if p seller etc)
3. Intragroup dividend- Remove from FI (p adj column)
4. Goodwill impairment- Remove from OPEX (p column if proportionate/s if FV)
5. FV adjustment- Remove from OPEX (s adj column: CA-FV/UEL)