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    Intercompany Transactions Had Not Occurred

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    Wawex Davis
    This document discusses the computation of comprehensive income attributable to non-controlling interests (NCI) in a consolidated financial statement. It shows Sol's comprehensive income of 120,000, realized profit of 12,000, and unrealized loss of 15,000, for a net income attributable to outsiders of 117,000. With a 20% NCI percentage, the amount attributable to NCI is 23,400. It also discusses the elimination of intercompany profits when preparing combined financial statements for companies under common ownership.

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    Intercompany Transactions Had Not Occurred

    Uploaded by

    Wawex Davis
    51 views2 pages
    This document discusses the computation of comprehensive income attributable to non-controlling interests (NCI) in a consolidated financial statement. It shows Sol's comprehensive income of 120,000, realized profit of 12,000, and unrealized loss of 15,000, for a net income attributable to outsiders of 117,000. With a 20% NCI percentage, the amount attributable to NCI is 23,400. It also discusses the elimination of intercompany profits when preparing combined financial statements for companies under common ownership.

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    Intercompany Transactions Had Not Occurred

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    This document discusses the computation of comprehensive income attributable to non-controlling interests (NCI) in a consolidated financial statement. It shows Sol's comprehensive income of 120,000, realized profit of 12,000, and unrealized loss of 15,000, for a net income attributable to outsiders of 117,000. With a 20% NCI percentage, the amount attributable to NCI is 23,400. It also discusses the elimination of intercompany profits when preparing combined financial statements for companies under common ownership.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    51 views2 pages

    Intercompany Transactions Had Not Occurred

    Uploaded by

    Wawex Davis
    This document discusses the computation of comprehensive income attributable to non-controlling interests (NCI) in a consolidated financial statement. It shows Sol's comprehensive income of 120,000, realized profit of 12,000, and unrealized loss of 15,000, for a net income attributable to outsiders of 117,000. With a 20% NCI percentage, the amount attributable to NCI is 23,400. It also discusses the elimination of intercompany profits when preparing combined financial statements for companies under common ownership.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Attributable to NCI P28,800

    51.
    Pan's total comprehensive income from P250,000

    own operation -- 2013


    Sol’s total comprehensive income from own operation 2013 120,000
    Realized profit in beginning inventory 12,000

    (P20,000 x 60%)
    unrealized profit in ending inventory ( 15,000)

    (P30,000 x 50%)

    Comprehensive income attributable to

    NCI:

    Sol's total comprehensive income P120,000

    Realized profit in beginning inventory 12,000

    Unrealized profit in ending inventory ( 15,000)


    Net income from outsiders P117,000

    NCI % 20% ( 23,400)


    P343,600
    Consolidated total comprehensive income attributable to parent

    December 31,2013

    52. Combined financial statements are prepared for companies that are owned by the same

    parent company but are not consolidated. To determine the gross profit in Bee and Cee's

    combined statement of comprehensive income, the intercompany profit resulting from Bee's

    sales to Cee should be eliminated. Thus, the computation is:

    Sales to unrelated companies by Cee P 91,000

    Cost of sales to combined entity:


    (P100,000 x P65,000/P130,000) ( 50,000)
    Gross profit P41,000
    53. The equipment is retained within the consolidated entity and should have the balance it

    would have had if no sale had taken place. The consolidated balances are achieved through

    elimination entries to account for the intercompany gain.

    The following are the balances the company would have had:

    Cost P100,000

    Accumulated depreciation:

    On date of acquisition P 25,000

    For 1 year 5,000 P 30,000

    When preparing consolidated financial statements, the objective is to restate the accounts as if
    the intercompany transactions had not occurred. Therefore the 2013 gain on sale of machine of
    P50,000 [P900,000 -- (P1,100,000 –P250,000)] must be eliminated, since the consolidated
    entity has not realized any gain. In, effect, the machine must be reflected on the consolidated
    statement of financial position at 1/1/013 at Poe's cost of P1,100,000, and accumulated
    depreciation of P250,000, instead of at a new "cost" of P900,000. For

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