Illustration 3.5A (p.

90)
Accounting for non-controlling interest

Income & R/E statements for year ended 31 Dec 20x8
Elimination &
Adjustments
Pluto
Operating profit

Saturn

160,000

60,000

18,900

0

Net profit before tax

178,900

60,000

Tax expense

-48,900

-18,000

Net profit after tax

130,000

42,000

R/E, 1 January

110,000

38,200

-100,000

-31,500

140,000

48,700

Dividend income from S

Dividends
R/E, 31 December

Dr.

Cr.

Consoli
dated
FS

Statement of financial position as at 31 December 20x8
Elimination &
Adjustments
Pluto

Saturn

Investment in S

117,000

0

Other assets

578,000

294,700

Total assets

695,000

294,700

Share capital

300,000

80,000

R/E

140,000

48,700

Long-term liabilities

200,000

130,000

55,000

36,000

695,000

294,700

Current liabilities
Total equity & liabilities

Dr.

Cr.

Consoli
dated
FS

Consolidation Journal Entries
Dr.

Share capital (Saturn)

80,000

Dr.

Retained earnings (Saturn)

30,000

Dr.

Goodwill

82,000

Cr.

Investment in Saturn

Cr.

Non-controlling interests

117,000
75,000

Income & R/E statements for year ended 31 Dec 20x8
Elimination &
Adjustments
Pluto
Operating profit

Saturn

160,000

60,000

18,900

0

Net profit before tax

178,900

60,000

Tax expense

-48,900

-18,000

Net profit after tax

130,000

42,000

Profit attributable to P

130,000

42,000

R/E, 1 January

110,000

38,200

-100,000

-31,500

140,000

48,700

Dividend income from S

Dr.

Profit attributable to NCI

Dividends
R/E, 31 December

30,000

Cr.

Consoli
dated
FS

Statement of financial position as at 31 December 20x8
Elimination &
Adjustments
Pluto

Saturn

Investment in S

117,000

0

Other assets

578,000

294,700

Goodwill
695,000

294,700

Share capital

300,000

80,000

R/E

140,000

48,700

NCI
Current liabilities
Total equity & liabilities

Cr.
117,000

82,000

Total assets

Long-term liabilities

Dr.

80,000
75,000

200,000

130,000

55,000

36,000

695,000

294,700

Consoli
dated
FS

Consolidation Journal Entries
Dr.

Share capital (Saturn)

80,000

Dr.

Retained earnings (Saturn)

30,000

Dr.

Goodwill

82,000

Cr.

Investment in Saturn

Cr.

Non-controlling interests

Dr.

Retained earnings (Saturn)

Cr.

Non-controlling interests

117,000
75,000
3,280
3,280

Income & R/E statements for year ended 31 Dec 20x8
Elimination &
Adjustments
Pluto
Operating profit

Saturn

160,000

60,000

18,900

0

Net profit before tax

178,900

60,000

Tax expense

-48,900

-18,000

Net profit after tax

130,000

42,000

Profit attributable to P

130,000

42,000

R/E, 1 January

110,000

38,200

Dividend income from S

Dr.

Profit attributable to NCI
30,000
3,280
Dividends
R/E, 31 December

-100,000

-31,500

140,000

48,700

Cr.

Consoli
dated
FS

Statement of financial position as at 31 December 20x8
Elimination &
Adjustments
Pluto

Saturn

Investment in S

117,000

0

Other assets

578,000

294,700

Goodwill

Dr.

Cr.
117,000

82,000

Total assets

695,000

294,700

Share capital

300,000

80,000

R/E

140,000

48,700

NCI

80,000
75,000
3,280

Long-term liabilities
Current liabilities
Total equity & liabilities

200,000

130,000

55,000

36,000

695,000

294,700

Consoli
dated
FS

Consolidation Journal Entries
Dr.

Share capital (Saturn)

80,000

Dr.

Retained earnings (Saturn)

30,000

Dr.

Goodwill

82,000

Cr.

Investment in Saturn

Cr.

Non-controlling interests

Dr.

Retained earnings (Saturn)

Cr.

Non-controlling interests

Dr.

Income to non-controlling interests

Cr.

Non-controlling interests

117,000
75,000
3,280
3,280
16,800
16,800

Income & R/E statements for year ended 31 Dec 20x8
Elimination &
Adjustments
Pluto
Operating profit

Saturn

160,000

60,000

18,900

0

Net profit before tax

178,900

60,000

Tax expense

-48,900

-18,000

Net profit after tax

130,000

42,000

Dividend income from S

Profit attributable to NCI

Dr.

16,800

Profit attributable to P

130,000

42,000

R/E, 1 January

110,000

38,200

30,000
3,280

Dividends
R/E, 31 December

-100,000

-31,500

140,000

48,700

Cr.

Consoli
dated
FS

Statement of financial position as at 31 December 20x8
Elimination &
Adjustments
Pluto

Saturn

Investment in S

117,000

0

Other assets

578,000

294,700

Goodwill

Dr.

Cr.
117,000

82,000

Total assets

695,000

294,700

Share capital

300,000

80,000

R/E

140,000

48,700

NCI

80,000
75,000
3,280
16,800

Long-term liabilities
Current liabilities
Total equity & liabilities

200,000

130,000

55,000

36,000

695,000

294,700

Consoli
dated
FS

Consolidation Journal Entries
Dr.

Share capital (Saturn)

80,000

Dr.

Retained earnings (Saturn)

30,000

Dr.

Goodwill

82,000

Cr.

Investment in Saturn

Cr.

Non-controlling interests

Dr.

Retained earnings (Saturn)

Cr.

Non-controlling interests

Dr.

Income to non-controlling interests

Cr.

Non-controlling interests

Dr.

Dividend income (Pluto)

18,900

Dr.

Non-controlling interests

12,600

Cr.

Dividends (Satrun)

117,000
75,000
3,280
3,280
16,800
16,800

31,500

Income & R/E statements for year ended 31 Dec 20x8
Elimination &
Adjustments
Pluto
Operating profit

Saturn

160,000

60,000

18,900

0

Net profit before tax

178,900

60,000

Tax expense

-48,900

-18,000

Net profit after tax

130,000

42,000

Dividend income from S

Profit attributable to NCI

Dr.

Cr.

18,900

16,800

Profit attributable to P

130,000

42,000

R/E, 1 January

110,000

38,200

30,000
3,280

Dividends
R/E, 31 December

-100,000

-31,500

140,000

48,700

31,500
68,980

31,500

Consoli
dated
FS

Statement of financial position as at 31 December 20x8
Elimination &
Adjustments
Pluto

Saturn

Investment in S

117,000

0

Other assets

578,000

294,700

Goodwill

Dr.

Cr.
117,000

82,000

Total assets

695,000

294,700

82,000

Share capital

300,000

80,000

80,000

R/E

140,000

48,700

68,980

31,500

12,600

75,000

NCI

117,000

3,280
16,800
Long-term liabilities
Current liabilities
Total equity & liabilities

200,000

130,000

55,000

36,000

695,000

294,700

161,580

126,580

243,580

243,580

Consoli
dated
FS

Income & R/E statements for year ended 31 Dec 20x8
Elimination &
Adjustments
Pluto
Operating profit

Saturn

Dr.

Cr.

Consoli
dated
FS

160,000

60,000

18,900

0

Net profit before tax

178,900

60,000

220,000

Tax expense

-48,900

-18,000

-66,900

Net profit after tax

130,000

42,000

153,100

Dividend income from S

Profit attributable to NCI

220,000
18,900

0

16,800

Profit attributable to P

130,000

42,000

R/E, 1 January

110,000

38,200

-16,800
136,300

30,000

114,920

3,280
Dividends
R/E, 31 December

-100,000

-31,500

140,000

48,700

68,980

31,500

-100,000

31,500

151,220

Statement of financial position as at 31 December 20x8
Elimination &
Adjustments
Pluto

Saturn

Investment in S

117,000

0

Other assets

578,000

294,700

Goodwill

Dr.

Cr.
117,000

Consoli
dated
FS
0
872,700

82,000

82,000

Total assets

695,000

294,700

82,000

Share capital

300,000

80,000

80,000

R/E

140,000

48,700

68,980

31,500

151,220

12,600

75,000

82,480

NCI

117,000

954,700
300,000

3,280
16,800
Long-term liabilities
Current liabilities
Total equity & liabilities

200,000

130,000

330,000

55,000

36,000

91,000

695,000

294,700

161,580

126,580

243,580

243,580

954,700