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CONSOLIDATED FINANCIAL STATEMENTS

PFRS 10: CONSOLIDATED FINANCIAL STATEMENTS


Who shall present consolidated FS?
- Parent Entity
Exemptions:
A parent entity is exempt from presenting consolidated financial statements
if ALL of the following conditions are met:
(1) It is a wholly-owned subsidiary/partially owned-subsidiary
of another entity and all its owner do not object to it
for not presenting consolidated Financial Statements
(2) Its debt or equity instruments are NOT TRADED in a PUBLIC market.
with a securities commission (SEC) for the purpose of issuing instruments
in a public market; and
(4) Its ultimate/any intermediate parent produces consolidated FS that are
available for public use and comply with PFRS.
After Business Combination, the parent and subsidiary retain their separate legal existence.
HOWEVER, for financial reporting purposes, they are viewed as SINGLE ECONOMIC ENTITY.
CONSOLIDATED FINANCIAL STATEMENTS
(as defined by PFRS 10) financial statements of a group in which Assets, Liabilities,
Equity, Income, Expense and Cash flows of the parent and its subsidiaries are
presented as those of a single economic entity.
BASIS FOR DETERMINING WHICH ENTITIES ARE CONSOLIDATED IN THE FS: CONTROL
BASIS OF INVESTORS TO DETERMINE WHETHER THE ENTITY IS A PARENT ENTITY: CONTROL
ACCOUNTING REQUIREMENTS:
UNIFORM ACCOUNTING POLICIES
Consolidated financial statements shall be presented using uniform accounting
policies for like transactions and other events in similar transactions
If that member of a group uses accounting policies different from those adopted
by group, APPROPRIATE ADJUSTMENTS shall be made.
REPORTING DATE
Financial statements used in consolidated financial statements: SAME REPORTING DATE
Unless, it is impracticable to do so.
In any case, the difference between the date of the subsidiarys FS and
that of the consolidated FS shall not exceed 3 months.
CONSOLIDATION PERIOD
Consolidation of an investee shall begin from the date the investor obtains control and
cease when the investor loses control of the investee.
MEASUREMENT
Income and Expenses of subsidiary shall be based on the amounts of the Assets and
liabilities recognized in the consolidated FS at the acquisition date
NON-CONTROLLING INTEREST
(by PFRS 10) equity in a subsidiary not attributable, directly or indirectly, to a parent.

Shall be presented in the consolidated SFP within THE EQUITY,


separately from the equity of the owners of the parent.
COMPONENTS OF NON-CONTROLLING INTEREST
(1) The amount of those non-controlling interest at the date of the original combination.
(2) Non-controlling interests share of changes in equity since the date of the combination
NON-CONTROLLING INTERESTS IN PROFIT OR LOSS AND COMPREHENSIVE INCOME
The profit or loss and each component of other comprehensive income in the consolidated
statement of profit or loss and other comprehensive income shall be attributed to the ff:
(1) Owners of the parent
(2) Non-controlling interests
*even if this results in the NCI having a deficit balance

CONSOLIDATION PROCEDURES:
Consolidated FS are prepared by combining the financial statements
of the parent and its subsidiaries line by line by adding together similar items of assets, liabilities,
equity, income and expenses.
(1) The carrying amount of the parents investment in each subsidiary and the parents
portion of equity of each subsidiary are eliminated.
The resulting goodwill is then recognized in the consolidated FS in accordance with PFRS 3
(2) Intragroup balances and transactions, including income, expenses and dividends,
are eliminated in full. Profits and losses resulting from intragroup transactions that
are recognized in assets, such as inventory and fixed assets, are eliminated in full.
(3) Non-controlling interests in the profit or loss of consolidated subsidiaries for
the reporting period are identified; and
(4) Non-controlling interests in the net assets of consolidated subsidiaries are identified
separately from the parents ownership interests in them.

al existence.
MIC ENTITY.

, Liabilities,

Y: CONTROL

accounting

se adopted

, to a parent.

inal combination.
of the combination.

VE INCOME
onsolidated
ibuted to the ff:

f assets, liabilities,
and the parents

rdance with PFRS 3.


and dividends,
ctions that
ted in full.
iaries for

ries are identified

Business Combination
Formulas

1.)

Noncontrolling interest

Priority 1 = Fair value of NCI given to the problem but it should not be lower than the NCI - measured at
Non-controlling interest's proportionate share of Subsidairy's identifiable net assets @ Fair Value.
If fair value of NCI given to the problem is lower than NCI measured at proportionate share
of Subsidiary's identifiable net assets use the latter.
Compuation of NCI measured in proportionate share of Subsidiary's identifiable net assets.
Subsidiary net assets at Fair Value
Multiply by: Noncontrolling interest
Fair value of NCI proportionate share in Subsidiary identifiable net assets

xxx
x%
xxx

Priority 2 = If Fair value of NCI is not given or unknown


Acquistion cost
Divided by: Controlling interest
Total fair value of business
Multiply by: Noncontrolling interest
Fair value of Noncontrolling interest

xxx
x%
xxx
x%
xxx

Note: But again the computed Fair value of Noncontrolling interest should not be lower than
than the fair value of NCI in proportionate share in Subsidiary's identifiable net assets.
Note: We apply whichever is higher rule: Part of the new provision, NCI should not have
an amount that is lower than the fair value of NCI measured in proportionate share in
Subsidiary's identifiable net assets. We use whichever is higher.

2.)

Result of acquisition
Acquisition cost (Consideration paid)
FMV of NCI
FMV of old investment in same company acquired ( less than 50%), included
Contingent liabiilty
Total
Less: FMV of Subsidiary Net Assets (100%)
Goodwill/Gain from acquisition

3.)

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xxx
xxx
xxx
xxx
xxx
xxx

Consolidated total Assets


Parent total assets (book value)
Subsidairy total assets (fair value) exclusive of goodwill, if any
Goodwill - result from acquisition
Payment - taken from the assets of the acquirer

xxx
xxx
xxx
(xxx)

Consolidated total assets


4.)

Consolidated retained earnings


Parent retained earnings before acquisition
Add: Gain from acquistion, if any
Total
Less: Expenses (Direct cost, indirect cost)
Consolidated retained earnings

5.)

xxx
xxx
xxx

Consolidated additional paid in capital


Parent additional paid in capital
Add: New issued share to acquire subsidiay - excess of par
Total
Less: Stock issue cost, if any
Consolidated additional paid in capital

7.)

xxx
xxx
xxx
xxx
xxx

Consolidated common stock


Parent common stock before acqquisition
Add: New issued shares to acquire subsidairy @ Par value
Consolidated Common Stock

6.)

xxxx

xxx
xxx
xxx
xxx
xxx

Consolidated stockholders' equity


Consolidated common stock
Consolidated additional paid in capital
Consolidated retained earnings
Noncontrolling interest
Consolidated stockholders' equity

xxx
xxx
xxx
xxx
xxx

@ Fair Value.

CONSOLIDATED STATEMENT
BUSINESS COMBINATION
FORMULAS
Chapter 16
1.) Consolidated net income
Parent net income
Less: Dividends income received from Subsidiary
Parent income from it's own operation
Less: Impairment loss on goodwill, if any
Parent adjusted net income
Add: Subsidiary adjusted net income
Subsidiary reported net income
+/- Amortization
- impairment loss on goodwill, if any
Consolidated net income
2.) Income from subsidiary
Subsidiary reported net income
+/- Amortization
- impairment loss on goodwill, if any
Subsidiary adjusted net income
Multiply: Controlling interest
Income from subsidiary
3.) Consolidated net income attributable to parent
Parent net income
Less: Dividends income received from Subsidiary
Parent income from it's own operation
Less: Impairment loss on goodwill, if any
Parent adjusted net income
Add: Income from subsidiary #2
Consolidated net income attributable to parent
4.) NCI in net income of Subsidiary/ Consolidated net income attributable to NCI
Subsidiary reported net income
+/- Amortization
- impairment loss on goodwill, if any
Subsidiary adjusted net income
Multiply: Noncontrolling interest
NCI in net income of Subsidiary
5.) Consolidated retained earnings
Parent retained earnings - January 1, current year

Add: Gain from acquistion, if any


Consolidated net income attributable to parent - #3
Total
Less: Dividends declared - parent only
Consolidated retained earnings - December 31, current year

Consolidated retained earnings formula if involves more the one previous year passed
Parent Reported Retained Earnings - January 1, current year
Less: Impairment loss - previous year if any
Parent Adjusted Retained Earnings - January 1, current year
Add: Undistributed Subsidiary adjusted net income in previous year/s
Subsidiary Retained Earnings - January 1 current year
Less: Subsidiary Retained Earnings - date of acquisition
Undistributed Subsidiary unadjusted cumulative earnings (net income)
Less: Amortization ( cumulative amortization )
Impairment of goodwill - previous year if any
Undistributed Subsidiary adjusted net income
Less: NCI share in the income undistributed adjusted cumulative earnings
Consolidated Retained Earnings - January 1, current year
Add: Consolidated net income attributable to parent - current year #3
Total
Less: Dividends declared - parent only
Consolidated Retained Earnings - ending

xxx
xxx

6.) Noncontrolling interest


First Year
Noncontrolling interest - January 1, current year - computed using formula chapter 15
Add: NCI in net income of Subsidiary/Consolidated net income attributable to NCI
Total
Less: Dividends declared x Noncontrolling interest
Noncontrolling interest - December 31 current year
Note: You must noted the initial Noncontrolling interest amount on the date of acquisition. Because that is always your
beginning balances.
Computation of Noncontrolling interest more then one previous year passed
Noncontrolling interest - at the date of acquisition ( initial )
Add: NCI share in the income undistributed adjusted cumulative earnings
Subsidiary Retained Earnings - January 1 current year
Less: Subsidiary Retained Earnings - date of acquisition
Undistributed Subsidiary unadjusted cumulative earnings (net income)
Less: Amortization ( cumulative amortization )
Impairment of goodwill - previous year if any
Undistributed Subsidiary adjusted net income
Multiply by: Noncontrolling interest
Noncontrolling interest - January 1, current year

xxx
xxx

Add: NCI in net income of Subsidiary/Consolidated net income attributable to NCI


Total
Less: Dividends declared x Noncontrolling interest
Noncontrolling interest - December 31 current year

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xxx
xxx
xxx
xxx
xxx

xxx
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xxx
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x%
xxx

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xxx

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x%
xxx

xxx

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xxx

xxx
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xxx

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xxx

Previous Year/s
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xxx

Current Year

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xxx

ecause that is always your

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x%

Previous Year/s
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xxx

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xxx

Current Year

CONSOLIDATED STATEMENT
BUSINESS COMBINATION
FORMULAS

Chapter 17
1.) Consolidated Sales
Parent
Sabsidiary
Total
Less: Intercompany sales (Downstream sales + Upstream sales)
Consolidated Sales
2.) Consolidated cost of goods sold
First Year
Parent
Subsidiary
Total
Intercompany sales (Downstream sales + Upstream sales)
Amortization of excess (inventory), if any
Unrealized gross profit in ending inventory
Cosolidated cost of goods sold
Second Year
Parent
Subsidiary
Total
Intercompany sales (Downstream sales + Upstream sales)
Amortization of excess (inventory), if any
Realized gross profit in beginning inventory
Unrealized gross profit in ending inventory
Cosolidated cost of goods sold
3.) Consolidated Inventory
Parent
Subsidiary
Add: Excess of inventory FMV over BV during acquisition that are remained unsold, if any
Total
Less: Unrealized gross profit in ending inventory (Downstream + Upstream)
Consolidated inventory
4.) Consolidated net income
First Year
Parent net income from own operation, exclusive of dividends income received from Subsidiary
Impairment loss, if any

Unrealized profit in ending inventory (Downstream sale)


Parent adjusted net income
Add: Subsidiary adjusted net income
Subsidiary reported net income
+/- Amortization
Impairment loss, if any
Unrealized profit in ending inventory (Upstream sale)
Consolidated net income
Second Year
Parent net income from own operation, exclusive of dividends income received from Subsidiary
Impairment loss, if any
Realized profit in begining inventory
Downstream sales
Unrealized profit in ending inventory
Parent adjusted net income
Add: Subsidiary adjusted net income
Subsidiary reported net income
+/- Amortization
Impairment loss, if any
Realized profit in begining inventory
Upstream sales
Unrealized profit in ending inventory
Consolidated net income

5.) Income from subsidiary


First Year
Subsidiary reported net income
+/- Amortization
Impairment loss, if any
Unrealized profit in ending inventory (Upstream sale)
Subsidiary adjusted net income
Multiply by: Controlling interest
Income from subsidiary
Second Year
Subsidiary reported net income
+/- Amortization
Impairment loss, if any
Realized profit in begining inventory
Unrealized profit in ending inventory
Subsidiary adjusted net income
Multiply by: Controlling interest
Income from subsidiary

Upstream sales

6.) Consolidated net income attributable to parent


First Year
Parent net income from own operation, exclusive of dividends income received from Subsidiary
Impairment loss, if any

Unrealized profit in ending inventory (Downstream sale)


Parent adjusted net income
Add: Income from subsidiary
Consolidated net income attributable to parent
Second Year
Parent net income from own operation, exclusive of dividends income received from Subsidiary
Impairment loss, if any
Realized profit in begining inventory
Downstream sales
Unrealized profit in ending inventory
Parent adjusted net income
Add: Income from subsidiary
Consolidated net income attributable to parent
7.) NCI in net income of Subsidiary/ Consolidated net income attributable to NCI
First Year
Subsidiary reported net income
+/- Amortization
Impairment loss, if any
Unrealized profit in ending inventory (Upstream sale)
Subsidiary adjusted net income
Multiply by: Noncontrolling interest
NCI in net income of Subsidiary/Consolidated net income attributable to NCI
Second Year
Subsidiary reported net income
+/- Amortization
Impairment loss, if any
Realized profit in begining inventory
Unrealized profit in ending inventory
Subsidiary adjusted net income
Multiply by: Noncontrolling interest
NCI in net income of Subsidiary

Upstream sales

8.) Consolidated retained earnings


Parent retained earnings - January 1, current year
Add: Gain from acquistion, if any
Consolidated net income attributable to parent
Total
Less: Dividends declared - parent only
Consolidated retained earnings - December 31, current year

Consolidated retained earnings formula if involves more the one previous year passed
Parent Reported Retained Earnings - January 1, current year
Less: Impairment loss - previous years if any
Unrealized profit in ending inventory - recent previous year

Parent Adjusted Retained Earnings - January 1, current year


Add: Undistributed Subsidiary adjusted net income in previous year/s
Subsidiary Retained Earnings - January 1 current year
Less: Subsidiary Retained Earnings - date of acquisition
Undistributed Subsidiary unadjusted net income
Less: Amortization ( cumulative amortization )
Impairment of goodwill - previous year if any
Unrealized profit in ending inventory - recent previous year
Undistributed Subsidiary adjusted net income
Less: NCI share in the income undistributed adjusted cumulative earnings
Consolidated Retained Earnings - January 1, current year
Add: Consolidated net income attributable to parent - current year #3
Total
Less: Dividends declared - parent only
Consolidated Retained Earnings - ending

xxx
xxx
xxx

6.) Noncontrolling interest


First Year
Noncontrolling interest - January 1, current year - computed using formula chapter 15
Add: NCI in net income of Subsidiary/Consolidated net income attributable to NCI
Total
Less: Dividends declared x Noncontrolling interest
Noncontrolling interest - December 31 current year
Note: You must noted the initial Noncontrolling interest amount on the date of acquisition. Because it is always your
beginning balance.
Computation of Noncontrolling interest more then one previous year passed
Noncontrolling interest - at the date of acquisition ( initial )
Add: NCI share in the income undistributed adjusted cumulative earnings
Subsidiary Retained Earnings - January 1 current year
Less: Subsidiary Retained Earnings - date of acquisition
Undistributed Subsidiary unadjusted cumulative earnings (net income)
Less: Amortization ( cumulative amortization )
Impairment of goodwill - previous year if any
Unrealized profit in ending inventory - recent previous year
Undistributed Subsidiary adjusted net income
Multiply by: Noncontrolling interest
Noncontrolling interest - January 1, current year
Add: NCI in net income of Subsidiary/Consolidated net income attributable to NCI
Total
Less: Dividends declared x Noncontrolling interest
Noncontrolling interest - December 31 current year

xxx
xxx
xxx

Note: Why we adjust Retained earnings and Noncontrolling interest beginning with the unrealized profit in ending inventory
recent previous year?

Because we corrected net income of the current year with the unrealized profit in ending inventory recent previou
year, which is now realized profit in beginning inventory for the current year.

See the computation of adjusted net incomes for Parent and Subsidairy, we included realized profit in
beginning inventory to get adjusted net income. Make this a constant procedure. Because, I agree there
is other way. How? Dont include realized profit in beginning in the computation of adjusted net income
and unrealized profit in ending recent previous year in adjusted retained earnings beginning to offset errors o
to counter balance. But again may I suggest to use the formula above constantly because it is seldom in
problem to have only Consolidated Retained Earnings as requirement normally consolidated net income is
also part of the requirement, with that you must included realized profit in beginning inventory.

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(xxx)
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(xxx)
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(xxx)

(xxx)
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(xxx)
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(xxx)
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(xxx)
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(xxx)

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(xxx)
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(xxx)
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x%
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(xxx)
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(xxx)
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x%
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(xxx)

(xxx)
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(xxx)
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(xxx)
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(xxx)
(xxx)
(xxx)
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x%
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(xxx)
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(xxx)
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x%
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xxx

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Previous Year/s
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Current Year

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n. Because it is always your

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Previous Year/s
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x%

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nrealized profit in ending inventory

Current Year

n ending inventory recent previous

luded realized profit in


edure. Because, I agree there
tation of adjusted net income
arnings beginning to offset errors or
stantly because it is seldom in
mally consolidated net income is
beginning inventory.

CONSOLIDATED STATEMENT
BUSINESS COMBINATION
FORMULAS

Chapter 18
1.) Consolidated net income
Year of sale (plant asset) - First year (Inventory)
Parent net income from own operation, exclusive of dividends received from subsidairy
Impairment loss
Unrealized profit in ending inventory
Net unrealized gain/loss on sale (depreciable asset)
Unrealized gain/loss on sale (non-depreciable assets)
Parent adjusted net income
Add: Subsidiary adjusted net income
Subsidiary reported net income
+/- Amortization
Impairment loss
Unrealized profit in ending inventory
Net unrealized gain/loss on sale (depreciable asset)
Unrealized gain/loss on sale (non-depreciable assets)
Consolidated net income
Second Year (plant asset) - Second year (inventory)
Parent net income from own operation
Impairment loss
Realized profit in begining inventory
Unrealized profit in ending inventory
Realized gain/loss on sale (annual depreciation)
Parent adjusted net income
Add: Subsidiary adjusted net income
Subsidiary reported net income
+/- Amortization
Realized profit in begining inventory
Unrealized profit in ending inventory
Realized gain/loss on sale (annual depreciation - excess)
Consolidated net income

xxx
(xxx)
(xxx)
(xxx)
(xxx)
xxx
xxx
(xxx)
(xxx)
(xxx)
(xxx)
(xxx)

Upstream sales
xxx
xxx

xxx
(xxx)
xxx
(xxx)
xxx
xxx
xxx
(xxx)
xxx
(xxx)
xxx

Downstream sales

xxx
xxx

2.) Income from subsidiary


Year of sale (plant asset) - First year (Inventory)
Subsidiary reported net income
+/- Amortization
Impairment loss
Unrealized profit in ending inventory
Net unrealized gain/loss on sale (depreciable asset)
Unrealized gain/loss on sale (non-depreciable assets)
Subsidiary adjusted net income
Multiply by: Controlling interest
Income from subsidiary

xxx
(xxx)
(xxx)
(xxx)
(xxx)
(xxx)
xxx
x%
xxx

Second Year (plant asset) - Second year (inventory


Subsidiary reported net income
+/- Amortization
Realized profit in begining inventory
Unrealized profit in ending inventory
Realized gain/loss on sale (annual depreciation)
Subsidiary adjusted net income
Multiply by: Controlling interest
Income from subsidiary

xxx
(xxx)
xxx
(xxx)
xxx
xxx
x%
xxx

Upstream sales only

Upstream sales only

3.) Consolidated net income attributable to parent


Year of sale (plant asset) - First year (Inventory)
Parent net income from own operation, exclusive of dividends received from subsidairy
Impairment loss
Unrealized profit in ending inventory
Net unrealized gain/loss on sale (depreciable asset)
Unrealized gain/loss on sale (non-depreciable assets)
Parent adjusted net income
Add: Income from subsidiary
Consolidated net income attributable to parent

xxx
(xxx)
(xxx)
(xxx)
(xxx)
xxx
xxx
xxx

Downstream sales

Second Year (plant asset) - Second year (inventory)


Parent net income from own operation
Impairment loss
Realized profit in begining inventory
Unrealized profit in ending inventory
Realized gain/loss on sale (annual depreciation)
Parent adjusted net income
Add: Income from subsidiary
Consolidated net income attributable to parent

xxx
(xxx)
xxx
(xxx)
xxx
xxx
xxx
xxx

Downstream sales

4.) NCI in the net income of Subsidairy


Year of sale (plant asset) - First year (Inventory)
Subsidiary reported net income
+/- Amortization
Impairment loss
Unrealized profit in ending inventory
Net unrealized gain/loss on sale (depreciable asset)
Unrealized gain/loss on sale (non-depreciable assets)
Subsidiary adjusted net income
Multiply by: Noncontrolling interest
Minority interest in net income

xxx
(xxx)
(xxx)
(xxx)
(xxx)
(xxx)
xxx
%
xxx

Second Year (plant asset) - Second year (inventory


Subsidiary reported net income
+/- Amortization
Realized profit in begining inventory
Unrealized profit in ending inventory
Realized gain/loss on sale (annual depreciation)
Subsidiary adjusted net income
Multiply by: Noncontrolling interest
Minority interest in net income

xxx
(xxx)
xxx
(xxx)
xxx
xxx
%
xxx

Upstream sales only

Upstream sales only

5.) Consolidated Retained Earnings


Year of sale of plant assets
No adjustment in Retained earnings on intercompany sales of plant assets, they are adjustment in
consolidated net income in the year of sales.
Second year or More than one previous year passed:
Consolidated retained earnings formula if involves more the one previous year passed
Parent Reported Retained Earnings - beginning / January 1
Gain on acquisition - on the date of acquisition
Impairment loss - previous years (cumulative)
Unrealized profit in ending inventory - recent previous year
Net unrealized gain/loss on sale (depreciable asset) - before adjustment of current year
Unrealized gain/loss on sale (non-depreciable assets)
Parent Adjusted Retained Earnings - beginning / January 1
Add: Undistributed Subsidiary adjusted net income
Subsidiary Retained Earnings - beginning of current year
Less: Subsidiary Retained Earnings - date of acquisition
Undistributed Subsidiary unadjusted net income
Amortization ( cumulative amortization )
Impairment loss - previous years (cumulative)
Unrealized profit in ending inventory - recent previous year
Net unrealized (gain)/loss on sale (depreciable asset) - before adjustment of current year
Unrealized (gain)/loss on sale (non-depreciable assets)
Total
Less: NCI share in the income undistributed adjusted cumulative earnings
Consolidated Retained Earnings - beginning/January 1
Add: Consolidated net income attributable to parent- current year
Total
Less: Dividends declared - parent only current year
Consolidated Retained Earnings - ending

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(xxx)
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(xxx)
(xxx)

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(xxx)
(xxx)
(xxx)
(xxx)
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xxx

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6.) Noncontrolling interest


Year of sale of plant assets
No adjustment in Retained earnings on intercompany sales of plant assets, they are adjustment in
consolidated net income in the year of sales.
Computation of Noncontrolling interest more then one previous year passed
Noncontrolling interest - at the date of acquisition ( initial )
Add: NCI share in the income undistributed adjusted cumulative earnings
Subsidiary Retained Earnings - beginning of current year
Less: Subsidiary Retained Earnings - date of acquisition
Undistributed Subsidiary unadjusted net income
Amortization ( cumulative amortization )
Impairment loss - previous years (cumulative)
Unrealized profit in ending inventory - recent previous year
Net unrealized (gain)/loss on sale (depreciable asset) - before adjustment of current year
Unrealized (gain)/loss on sale (non-depreciable assets)
Total
Multiply by: Noncontrolling interest %
Noncontrolling interest - January 1, current year
Add: NCI in net income of Subsidiary/Consolidated net income attributable to NCI
Total
Less: Dividends declared x Noncontrolling interest
Noncontrolling interest - December 31 current year

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xxx
(xxx)
(xxx)
(xxx)
(xxx)
xxx
xxx

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7.) Plant and equipment on consolidated - Old cost or Cost prior to intercompany sales
8.) Accumulated Depreciation
Accumulated Depreciation - amount prior to intercompany sales (original or old value) - January 1, current
Add: Depreciation for year - computed in original depreciation (OLD)
Total

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xxx
xxx

9.) Total gain on sale of plant assets when asset sold intercompany is sold to outsider.
Actual gain in selling it to outsider
Add: Remainining unrealized gain on sale of assets
Total gain

xxx
xxx
xxx

Note: Please observed the sign if it is unrealized loss, deduct.