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    14 Consolidated FS Pt1 PDF

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    Riselle Ann Sanchez
    Bass Co. acquired a 75% interest in Guitar Co. on January 1, 20x1 in exchange for equity instruments. Guitar Co.'s net assets had a carrying amount of ₱300,000 and fair value of ₱360,000. The December 31, 20x1 consolidated statement of financial position showed total assets of ₱1,974,000, non-controlling interest of ₱136,500, retained earnings of ₱534,500, and total equity of ₱1,642,000.

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    14 Consolidated FS Pt1 PDF

    Uploaded by

    Riselle Ann Sanchez
    8K views2 pages
    Bass Co. acquired a 75% interest in Guitar Co. on January 1, 20x1 in exchange for equity instruments. Guitar Co.'s net assets had a carrying amount of ₱300,000 and fair value of ₱360,000. The December 31, 20x1 consolidated statement of financial position showed total assets of ₱1,974,000, non-controlling interest of ₱136,500, retained earnings of ₱534,500, and total equity of ₱1,642,000.

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    14-Consolidated-FS-Pt1.pdf

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    Bass Co. acquired a 75% interest in Guitar Co. on January 1, 20x1 in exchange for equity instruments. Guitar Co.'s net assets had a carrying amount of ₱300,000 and fair value of ₱360,000. The December 31, 20x1 consolidated statement of financial position showed total assets of ₱1,974,000, non-controlling interest of ₱136,500, retained earnings of ₱534,500, and total equity of ₱1,642,000.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    8K views2 pages

    14 Consolidated FS Pt1 PDF

    Uploaded by

    Riselle Ann Sanchez
    Bass Co. acquired a 75% interest in Guitar Co. on January 1, 20x1 in exchange for equity instruments. Guitar Co.'s net assets had a carrying amount of ₱300,000 and fair value of ₱360,000. The December 31, 20x1 consolidated statement of financial position showed total assets of ₱1,974,000, non-controlling interest of ₱136,500, retained earnings of ₱534,500, and total equity of ₱1,642,000.

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    of 2

    IR2 – AFAR

    Consolidated FS (Part 1)

    Use the following information for the next five questions:


    On January 1, 20x1, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On
    acquisition date, Bass Co. elected to measure non-controlling interest at fair value. Bass Co.’s
    management believes that the fair value of the consideration transferred correlates to the fair value of the
    controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair
    value of the remaining interest.

    Guitar Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000,
    respectively. The difference is attributable to a building with a remaining useful life of 6 years.

    The December 31, 20x1 statements of financial position of Bass Co. and Guitar Co. are summarized
    below:

    Bass Co. Guitar Co.


    ASSETS
    Investment in subsidiary (at cost) 300,000 -
    Other assets 1,372,000 496,000
    TOTAL ASSETS 1,672,000 496,000

    LIABILITIES AND EQUITY


    Trade and other payables 292,000 120,000
    Share capital 940,000 200,000
    Retained earnings 440,000 176,000
    Total equity 1,380,000 376,000
    TOTAL LIABILITIES AND EQUITY 1,672,000 496,000

    No dividends were declared by either entity during year. There were also no inter-company transactions
    and impairment in goodwill.

    1. What amount of goodwill is presented in the consolidated statement of financial position on


    December 31, 20x1?
    a. 40,000
    b. 35,000
    c. 20,000
    d. 15,000

    2. How much is the consolidated total assets as of December 31, 20x1?


    a. 1,867,000
    b. 1,907,000
    c. 1,958,000
    d. 1,974,000

    3. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 20x1?
    a. 106,500 c. 136,500
    b. 116,500 d. 146,500

    4. How much is the consolidated retained earnings on December 31, 20x1?


    a. 489,500 c. 534,500
    b. 498,500 d. 543,500

    5. How much is the consolidated total equity on December 31, 20x1?


    a. 1,546,000 c. 1,642,000
    b. 1,564,000 d. 1,624,000

    Use the following information for the next three questions:


    On January 1, 20x1, Laughter Co. issued equity instruments in exchange for 75% interest in Tears Co.
    Tears Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000,
    respectively. The difference is attributable to a building with a remaining useful life of 6 years.

    The December 31, 20x1 statements of profit or loss of Laughter Co. and Tears Co. are summarized
    below:

    Statements of profit or loss


    For the year ended December 31, 20x1
    Laughter Co. Tears Co.
    Revenues 1,200,000 480,000
    Operating expenses (960,000) (400,000)
    Profit for the year 240,000 80,000

    6. How much is the consolidated profit in 20x1?


    a. 301,000 c. 320,000
    b. 310,000 d. 336,000

    7. How much is the consolidated profit attributable to owners of the parent in 20x1?
    a. 292,500 c. 320,000
    b. 310,000 d. 232,500

    8. How much is the consolidated profit attributable to non-controlling interest in 20x1?


    a. 6,500 c. 57,500
    b. 17,500 d. 77,500

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