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    REDOBLE Consolidation Subsequent To Date of Acquisition

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    Shiela Mae Redoble
    The document is a consolidated statement of financial position for ABC Group as of December 31, 2021. It combines the assets and liabilities of ABC Co. and its subsidiary, XYZ Inc., which it acquired on January 1, 2021. The summary provides calculations related to the consolidation, including fair value adjustments, goodwill, non-controlling interest, retained earnings, and consolidated profit allocation.

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    REDOBLE Consolidation Subsequent To Date of Acquisition

    Uploaded by

    Shiela Mae Redoble
    38 views2 pages
    The document is a consolidated statement of financial position for ABC Group as of December 31, 2021. It combines the assets and liabilities of ABC Co. and its subsidiary, XYZ Inc., which it acquired on January 1, 2021. The summary provides calculations related to the consolidation, including fair value adjustments, goodwill, non-controlling interest, retained earnings, and consolidated profit allocation.

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    REDOBLE Consolidation Subsequent to Date of Acquisition

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    The document is a consolidated statement of financial position for ABC Group as of December 31, 2021. It combines the assets and liabilities of ABC Co. and its subsidiary, XYZ Inc., which it acquired on January 1, 2021. The summary provides calculations related to the consolidation, including fair value adjustments, goodwill, non-controlling interest, retained earnings, and consolidated profit allocation.

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

    REDOBLE Consolidation Subsequent To Date of Acquisition

    Uploaded by

    Shiela Mae Redoble
    The document is a consolidated statement of financial position for ABC Group as of December 31, 2021. It combines the assets and liabilities of ABC Co. and its subsidiary, XYZ Inc., which it acquired on January 1, 2021. The summary provides calculations related to the consolidation, including fair value adjustments, goodwill, non-controlling interest, retained earnings, and consolidated profit allocation.

    Copyright:

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

    Redoble, Shiela Mae S.

    Acctg 315 1:30-3:00


    PM TTH

    Consolidation - Subsequent to date of acquisition

    ABC Group
    Consolidated Statement of Financial Position
    As of December 31, 2021

    ASSETS
    Cash (23k + 57k) 80,000
    Accounts receivable (75k + 22k) 97,000
    Inventory (105k + 15k + 0 FVA net) 120,000
    Equipment, net (140k + 30k + 10k FVA net) 180,000
    Goodwill 3,000
    TOTAL ASSETS 480,000

    LIABIITIES AND EQUITY


    Accounts payable (73k+30k) 103,000
    Total liabilities 103,000
    Share capital 170,000
    Share premium 65,000
    Retained earnings 121,200
    Owners of parent 356,200
    Non-controlling interest 20,800
    Total equity 377,000
    TOTAL LIABILITIES AND EQUITY 480,000

    Solutions:
    1.)
    FVA, 1/1/2021 Useful life Depreciation FVA, 12/31/2021
    Inventory 4,000 N/A 4,000 -
    Equipment 12,000 6 years 2,000 10,000
    Total 16,000 6,000 10,000

    *Inventory assumed to have been sold

    XYZ, Inc. Jan.1, 2021 Dec. 31,2021 Net change


    Net assets at carrying amount 74,000 94,000
    Fair value adjustments 16,000 10,000
    Net assets at fair value 90,000 104,000 14,000

    2.) Computation of Goodwill


    Consideration transferred 75,000
    Non-controlling interest in the acquire (90k x 20%) 18,000
    Total 93,000
    Less: Fair value of net identifiable assets 90,000
    Goodwill 3,000

    3.) NCI
    Subsidiary’s net assets at fair value – 12/31/2021 104,000
    Multiply by: NCI percentage 20%
    Non-controlling interest in net assets – 12/31/2021 20,800

    4.)
    ABC Co.’s retained earnings – 12/31/2021 110,000
    ABC Co.’s share in net change in subsidiary’s net assets (14k x 80%) 11,200
    Consolidated retained earnings – 12/31/2021 121,200

    5.)
    Profits of ABC Co. and XYZ Inc. (60k + 20k) 80,000
    Depreciation of FVA (6,000)
    Consolidated profit 74,000

    Consolidated profit is attributed to the owners of the parent and NCI:


    Owners of parent NCI Consolidated
    ABC Co.’s profit before FVA 60,000 N/A 60,000
    Share in XYZ Inc.’s profit before FVA
    (20k x 80%) & (200k x 20%) 16,000 4,000 20,000
    Depreciation of FVA
    (6k x 80%) & (6k x 20%) (4,800) (1,200)
    (6,000)
    Totals 71,200 2,800 74,000

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