WPEEs - DATE OF ACQUISITION CONSOLIDATED SFP COMPUTATIONS

1. Ordinary shares - Subsidiary Total assets - P (BV) xx

Share premium - Subsidiary Total assets - S (BV) xx
Retained earnings - Subsidiary FV adjustments (Subsidiary's accounts only) xx
Investment in Subsidiary (SHE - S x CI %) Goodwill arising from BC xx
Non-controlling Interest (SHE - S x NCI %) Less: Investment in subsidiary (xx)
To eliminate the pre-acquisition equity of the subsidiary Consolidated Total Assets xx

2. Assets - S (Increase) Total liabilities - P (BV) xx

Liabilities - S (Decrease) Total liabilities - S (BV) xx
Assets - S (Decrease) FV adjustments xx
Liabilities - S (Increase) Consolidated Total Liabilities xx
Investment in Subsidiary (Net FV adjustments x CI %)
Non-controlling Interest (Net FV adjustments x NCI %) Share capital - P xx
To restate assets and liabilities at fair value Share premium - P xx
Retained earnings - P xx
3. Goodwill Gain on bargain purchase xx
Investment in Subsidiary* Non-controlling interest xx
Non-controlling Interest* Consolidated Total SHE xx
To recognize goodwill
Inventory - P, 12/31 xx
* Parent NCI Inventory - S, 12/31 xx
Initial measurement xx xx +/- FV adjustments at date of acquisition xx(xx)
Less: Proportionate share in the FV of subsidiary's INA (xx) (xx) +/- Cumulative amortization of PD xx(xx)
Share in goodwill xx xx Consolidated Inventory, 12/31 xx

If IFAC: PPE - P, 12/31 xx

Investment in Subsidiary PPE - S, 12/31 xx
Gain on Bargain Purchase +/- FV adjustments at date of acquisition xx(xx)
+/- Cumulative amortization of PD xx(xx)
WPEEs - SUBSEQUENT TO DATE OF ACQUISITION Consolidated PPE, 12/31 xx

4. Dividend income Total assets - P, 12/31 xx

Non-controlling Interest Total assets - S, 12/31 xx
Retained earnings - Subsidiary Goodwill (net of impairment) xx
To eliminate intercompany dividends +/- FV adjustments at date of acquisition xx(xx)
+/- Cumulative amortization of PD xx(xx)
5. Undervalued Assets - Investment in subsidiary (xx)
Cost of goods sold - Intercompany asset accounts (xx)
Depreciation expense Consolidated Total Assets, 12/31 xx
Inventory
Equipment Total liabilities - P, 12/31 xx
Amortization of purchase differentials Total liabilities - S, 12/31 xx
+/- FV adjustments at date of acquisition xx(xx)
Overvalued Assets +/- Cumulative amortization of PD xx(xx)
Inventory - Intercompany liability accounts (xx)
Equipment Consolidated Total Liabilities, 12/31 xx
Cost of goods sold
Depreciation expense Ordinary share capital - P xx
Amortization of purchase differentials Preference share capital - P xx
Share premium - P xx
6. Impairment loss *will only happen if the Subscribed share capital xx
Goodwill result of BC is GW Consolidated Total Contributed Capital xx
To recognize impairment loss on goodwill
Consolidated Total Contributed Capital xx
7. Retained earnings Consolidated Retained Earnings xx
Non-controlling Interest NCINAS xx
To recognize non-controlling interest Consolidated Total SHE, 12/31 xx
in the net assets of subsidiary
SUBSEQUENT TO DATE OF ACQUISITION

Computation of Consolidated Net Income

Group Parent NCI
NI - P xx xx
NI - S xx xx xx -> based on ownership %
Dividends from Subsidiary (P's share) (xx) (xx)
+/- Amortization of Purchase Differentials xx(xx) xx(xx) xx(xx) -> based on ownership %
- Impairment Loss on Goodwill (xx) (xx) (xx)/- NCI @ FV: share of IL
+ Gain on Bargain Purchase (only in the year of acquisiton) xx xx NCI @ PS: no share of IL
xx xx xx
CNI CNI-P NCINIS

Computation of Consolidated Retained Earnings

Consolidated Retained Earnings, Beginning xx
+ CNI - P xx
- Dividends Declared & Paid - P (xx)
Consolidated Retained Earnings xx

Computation of Non-Controlling Interest in the Net Assets of Subsidiary (NCINAS)

NCI, Beginning xx
+ NCINIS xx
- Dividends from Subsidiary (NCI's share) (xx)
NCI, Ending xx

INTERCOMPANY TRANSACTIONS

Intercompany Sale of Inventory

Down Up Total
Sale price in intercompany sale xx xx
Cost of intercompany sale (xx) (xx)
Profit from intercompany sale xx xx
Multiply: Unsold portion as of yr. end xx xx
Unrealized Gross Profit xx xx xx

Sales of Parent xx
Sales of Subsidiary xx
Less: Intercompany sales during the CY (xx)
Consolidated Sales xx

Cost of sales of Parent xx

Cost of sales of Subsidiary xx
Less: Intercompany sales during the CY (xx)
Add: Unrealized profit in EI xx
Less: Realized profit in BI (xx)
Add: Depreciation of FVA on inventory xx
Consolidated Cost of Sales xx

Intercompany Sale of Inventory

Ending Inventory of Parent xx
Ending Inventory of Subsidiary xx
Less: Unrealized profit in EI (xx)
Consolidated Ending Inventory xx

Intercompany Sale of PPE

PPE - net (Parent) xx
PPE - net (Subsidiary) xx
Less: Unamortized deferred gain / Add: Unamort. def. loss xx(xx)
Add: FVA, net (if any) xx
Consolidated PPE - Net xx

Depreciation expense (Parent) xx

Depreciation expense (Subsidiary) xx
Less: Amortization of deferred gain / Add: Amort. of def. loss xx(xx)
Consolidated Depreciation Expense xx
IMPAIRMENT OF GOODWILL

NCI measured at FV
Consideration transferred xx
Less: PHE interest in the acquiree xx
Total xx
Less: P's share in the net assets of subsidiary (xx)
Goodwill attrbutable to owners of parent - AD xx
Less: P's share in GW impairment (xx)
Goodwill attributable to owners of parent - CD xx

Fair value of NCI xx

Less: NCI's share in net assets of subsidiary xx
Goodwill attributable to NCI - AD xx
Less: NCI's share in GW impairment (xx)
Goodwill attributable to NCI - CD xx

Total Goodwill, net - consolidation date xx

LOSS OF CONTROL

Consideration received (FV) xx

Investment retained in the former subsidiary (FV) xx
NCI (carrying amount) xx
Total xx
Less: Former subsidiary's net identifiable assets (carrying amt) (xx)
Goodwill (carrying amount) (xx)
Gain or loss on disposal of controlling interest xx