Advanced financial accounting - Lecture 38. The main topics covered in this chapter include: the data will appear as row-wise and individual amount will be highlighted one by one; solution consolidate balance sheet; calculate holding and minority percentage;... Please refer to the lecture for details!
Trang 1Lecture38
Trang 2Balance Sheet
as 31st December 2008
H (Rs) S (Rs) Fixed assets 1,000 450 Investment in S 550 Current assets 350 150 Total assets 1900 600
Share capital 1200 300
Current liabilities 100 100 Total liabilities & equities 1900 600 The Holding Co.(H) acquired 80% share of the Subsidiary Co. (S) on 31st December 2008 Required: Prepare the Consolidated Balance Sheet as at 31st December 2008
Trang 3Working
240 / 300 x 100 = 80%
Trang 4Less Owner’s equity (500 x 80%) 400
Trang 5Holding Co. (Rs)
80%
Minority (Rs)
20%
(450 x 80%) 360
(150 x 80%) 120
480
(100 x 80%) (80)
400
(450 x 20%) 90 (150 x 20%) 30 120 (100 x 80%) (20) 100
Trang 6Solution Consolidate Balance Sheet
As 31st December 2008
Rs Fixed Assets 1450
Current Assets 500
Share Capital 1200
Minority Interest 100 Current Liabilities 200
2100
Trang 7As 31st December 2008
Rs Rs Fixed Assets 1,000 450 Investment in S 500
Current Assets 400 150
Share Capital 1200 300
Current Liabilities 100 100
The Holding Co.(H) acquired 80% shares of the Subsidiary Co. (S) on 31st January 2008 when it’s reserves were worth Rs.120. Goodwill impaired up to Rs.33 during the year
Required: Prepare the Consolidated Balance Sheet as at 31st December 2008
Trang 81 Calculate holding and minority percentage
2 Identify pre and post acquisition elements in
owner’s equity of subsidiary Co.
3 Calculate goodwill
4 Calculate group reserve
5 Calculate minority interest
Trang 9
Holding = 80%
Monitory = 20%
Trang 10
Preacquisition Postacquisition Capital 300 0
Reserves 120 80
Total 420 80
Trang 11Goodwill
Cost of investment in subsidiary Co. 500 Less Preacquisition of OE of
Less Goodwill impairment 33
131
Trang 12Group Reserves
All reserves of parent Co. 600 Post acquisition of subsidiary Co. (80x80%) 64
631
Trang 13acquisiti
on
Post
acquisiti
on Owner’s
Trang 14Solution Consolidate Balance Sheet
As 31st December 2008
H Rs Fixed Assets (1,000 +450) 1450
Current Assets (400 + 150) 550
Share Capital 1200
Minority Interest 100 Current Liabilities 200
2131
Trang 15Question Balance Sheet
As 31st December 2008
Rs Rs
Fixed Assets 1,000 450
Investment in S 500
Dividend Receivable 40
360 Other Current Liabilities
Total Current Assets 400 150
Share Capital 1200 300
Dividend Payable 70
30 Other Current Liabilities
Current Liabilities 100 100
The Holding Co.(H) acquired 80% shares of the Subsidiary Co. (S) on 31st January 2008 when it’s reserves were worth Rs.120. Goodwill impaired upto Rs.33 during the year
Required: Prepare the Consolidated Balance Sheet as at 31st December 2008
Trang 16H Rs Fixed Assets (1000 + 450) 1450
Current Assets (360+150) 510
Share Capital 1200
Minority Interest 100 Other Current Liabilities 80
80
Dividend Payable by H 70
Dividend due to monitory 10
Current Liabilities 160
2091