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    Solution Gabi and Sahara

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    Naim lala
    This document outlines 6 steps to account for the acquisition of a subsidiary: 1) Determine goodwill and non-controlling interest, 2) Calculate gain/loss on acquisition, 3) Prepare schedule of changes in ownership, 4) Prepare consolidated statement of profit or loss, 5) Prepare consolidated statement of changes in equity, 6) Record balance of consolidated retained profits. It involves calculating values such as goodwill, non-controlling interest, profit/loss allocation, and presenting the results across multiple financial statements.

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    Solution Gabi and Sahara

    Uploaded by

    Naim lala
    54 views3 pages
    This document outlines 6 steps to account for the acquisition of a subsidiary: 1) Determine goodwill and non-controlling interest, 2) Calculate gain/loss on acquisition, 3) Prepare schedule of changes in ownership, 4) Prepare consolidated statement of profit or loss, 5) Prepare consolidated statement of changes in equity, 6) Record balance of consolidated retained profits. It involves calculating values such as goodwill, non-controlling interest, profit/loss allocation, and presenting the results across multiple financial statements.

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    This document outlines 6 steps to account for the acquisition of a subsidiary: 1) Determine goodwill and non-controlling interest, 2) Calculate gain/loss on acquisition, 3) Prepare schedule of changes in ownership, 4) Prepare consolidated statement of profit or loss, 5) Prepare consolidated statement of changes in equity, 6) Record balance of consolidated retained profits. It involves calculating values such as goodwill, non-controlling interest, profit/loss allocation, and presenting the results across multiple financial statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    54 views3 pages

    Solution Gabi and Sahara

    Uploaded by

    Naim lala
    This document outlines 6 steps to account for the acquisition of a subsidiary: 1) Determine goodwill and non-controlling interest, 2) Calculate gain/loss on acquisition, 3) Prepare schedule of changes in ownership, 4) Prepare consolidated statement of profit or loss, 5) Prepare consolidated statement of changes in equity, 6) Record balance of consolidated retained profits. It involves calculating values such as goodwill, non-controlling interest, profit/loss allocation, and presenting the results across multiple financial statements.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Notes: A to S

    Schedule – Add/Less Gain or Loss from 2nd acquisition under RP’s HC

    CSOPL – Add/Less Gain or Loss from 2nd acquisition

    CSOCIE – None

    CSOFP - None

    STEP 1 – Determine goodwill/BP on 2nd acquisition (Sub)

    Goodwill NCI
    RM’000 RM’000
    CT 70
    Add: FV of previously acquired interest 190
    Add: NCI 90 90
    350

    Less: FVNA of S @ DOA (2nd acquisition)


    OSC 200
    Pre RP – Bal b/f 80
    CY RP – 40 x 3/12 10 (290)
    Goodwill 60
    Less: Impairment (10%) (6)
    TO CSOFP 54

    Dt RP (Gabi) (70%) 4.2


    Dt NCI 30% 1.8
    Ct Goodwill 6

    STEP 2: Determine gain/loss on 2nd acquisition

    RM
    Fair value of previously acquired interest 190

    Less: Carrying amount @ 1st acquisition


    CT 180
    Add: Share of profit A
    RP (90-40) x 40% 20 (200)
    Loss on 2nd acquisition (10)
    STEP 3 – SCHEDULE

    NCI GRP
    RP – Gabi (70 +30) 100
    Less: OSD (40)
    Add: Share of Profit A 20
    Less: Changes in (10)
    shareholding/Loss on 2nd
    acquisition
    Less: Impairment (4.2) (1.8) 65.8

    RP – Sahara (80+40) 120


    Less: Pre RP (90)
    Less: URP (10)
    20 6 (30%) 14 (70%)
    To CSOFP 94.2 79.8

    STEP 4: CSOPL

    RM
    Revenue 300 + (230 x 9/12) - 100 372.5
    Less: COS 100 + (120 x 9/12) – 100 + 10 (100)
    272.5
    Less: Operating expenses 80 + (40 x 9/12) (110)
    Less: Impairment of goodwill (6)
    Add: Share of profit A 4
    Less: Changes in shareholding (A (10)
    to Sub)
    PBT 150.5
    Less: Taxation 90 + (30 x 9/12) (112.5)
    PAT 38

    PAT attributable
    HC 33.8
    NCI (W1) 4.2
    38

    W1: NCI

    PAT of Sahara (40 x 9/12) 30


    Less: URP (10)
    ------
    20 x 30% = 6
    Less: Impairment on goodwill
    (6 x 30%) (1.8)
    ------
    4.2
    STEP 5: CSOCIE

    GRP NCI
    RP @ 1/1/20 (W1) 86 -
    Add: Profit for the year 33.8 4.2
    Acquisition during the year 90
    Less: Changes in -
    shareholding/loss

    Less: Appropriation:
    OSD (40)
    RP @ 31/12/20 79.8 94.2

    W1- RP @ 1/1/20

    RP – Gabi 70
    Add: Share of profit A 16
    ----
    86

    RP – Sahara (acquisition during the year)

    W1 – NCI

    NCI @ DOA (1/4/20) 90

    STEP 6: CSOFP = Bal figure = 684

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