Ady, ® «RANCH ranean, ACCOUNTING AND REPORT HIG . * Hed Hoseciai Mivowmanta (Batt 1) : seston ~ Date ot senuteition re NY 1. Bed, ABC EO erquieR RIM interest in ver foe Be tiwag LON shaven WAM fair venue of 960 pee Meacetne BO waka of FaD pes shwe She Meare ane CD 900 Bet it, momentos here "AMBION are phon Be bs : Sante . abe Ba." WE tne Fred - ahted BRB Accounts sw abie 120.080 ed ventory 140.000 91.46 Covtbment whee ie <0, AcwImotaten aepreciation (8 24035 (ae S08, Ot! ener: 1,040,000 370,000 ne 1 040,000 990,000 | ‘Accounts payatie 2A c : wn 6 aca ne ‘Share apna: 0 te 280,000 Share premium Pace Retaines earnings 200,000 96.200 Tote! tetiltves and eavity” . 1,040,000 See ‘OA donunry 1, 20K, the fait value of the assets and hint ites Of YYZ Inc, were Cetermned by appranat a6 XYZ, Ine. “Carrying Fair Fair value wenn SMOUNEE VENUES _Incrormert 20,000 20.000 Accounts receivable 48.0% 48,000 Inventory $2,000 124.000 32,000 Equipment 200,000 240.000 40,000 Accumulated depreciation (40,000) (48,000) (8,000) Accounts peyable (24,090) _ (24,000) : Net assets 360,000 _ 64,000 298, 000 960,000 64,000 ThE equinment hes a remaining useful hte as of 4 years from January 1, 20x4 } | Case #1: NCI measured at proportionate share of parent | ABC Co. elects to measure non-contratting interest as tt proportion 1. How much is the consolidated total assets es of lenumry 1 sO» 2. 1,436,000, 1,439,000 c 1,736,000 fe share in XV2's net igentifiatne assets © 3,376,000 2. How much is the consolisated total equity as of Jenuery 1, 20x17 - 2.200,000 ©. 1,215,000 ¢. 1,212,000 "9. 1,364,000 Case #2: NCI measured at fair value Jose nents the option to measure non-controting interest at fa valve and a value of ¥75,080 « assigned to the 20% non-controiting interest {(F300,000 + 80%) x 20% » 75,000} 3. How much is the consolidated totat assets es of January 1. 20st? @. 4,436,000 B.1,439,000€. 1,736,000 "a. 1,576,000 ‘4. How much is the consolidated total equity as of January 1, 70x1 z # 1,200,000 1. 4.215,000 ©. 1,212,000 | a, 1,364,000 _ Consolidation subsequent to date of acquisition (Proportionate share) - Fact pattern On January 1, 2013, ABC Co. acquired BO% interest in X¥Z, nc, re and par value of P40 per share On acquisition date, te share in XYZ, Inc.’s net identifiavle asrets, by ‘suing $,000 snares wan for vat of P60 OH ABC Co. elected to measure non-controting interest a8 RS» 12's shareholders equty a8 of Jaruary 1, 20H1 compen he toning (at carrying amounts) Share capita! 700,006 Retained earnings 96,000 Tota’ equity 296,000 (On January 1, 208%, the fair waives of the assets and habwties of KZ, Inc were detarmunads hy aporena’, #6 Moan V2, Ine. Cash Accounts receivatie Inventory Equipment Accumulated depreciation ‘Accounts payable ‘Net assets ‘The remaining useful ite of the equipment is 4 years were asc no wter-compaty tremactons, 7 During 20x, no divigends were declared by either ABC or XYZ Ther (Qroup determined that there Is. No goodwill impairment ABC's and XY2's individual financia! statements at year-end are snown Below Statements of financial position As at December 31, 20x1 ASSETS cash Accounts receivable Inventory Investment in subsidiary Equipment 800,000 ‘Accumulated depreciation (240,000) TOTAL ASSETS = 1,672,000 LIABILITIES AND EQUITY ‘Accounts payabie Bonds payable Share premium Retained earnings Total equity _ tements of profit or toss Statements cinded December 25, 2081 sales Cost of goods $016 _ “Gross prot Depreciation expense Distnbution costs, Interest expense ' “profit for the year, yrofit for 202? ae “0 consouore” 70,000 ¢. 240,000 lidated total assets as of Decern q tom much gm cone pb. 1,907,000 © 1,694,000 (72,000) 80,000 4, 296,000 iver 34, 20017 ‘3. 1,904,000‘how much & the consoles total equty wb of Deceene 38, HOt? > nom tutal equity ah of Decemione 31, Ht 1,492,000 BLAISOND C$412000 4, 4.41,000 - “consolidation subsequent to date of acquisition = NCE at Fair wale pact pattern Hee ty 1) 20x, ABC Co, ecuutres BOM seterest sm TVT, Yc. by vac S00 shares wth fer valve of 908 ons share 406 pat va ot "40 pr snare On wcuto oe Fe el wo mambire ar-eartrating iiarwsk a ihe Ron-controting interests falr value. va'ie cf £78,000 3 me mrofaeny terest {710 20 80%) X 20% # 75,000) e . spacey rtareet {PETA AYZ's shereholters’ equity as ct January 1, 204 comarieet the forewing (at carrying ne amounts) ‘Ehare capital $6006 Retained earnings 96,000 . Tota eaity 6 00 “On January 1, 20%3, the for values of the agers anc Mab Ee : Carrying arvounts Cash Accounts rece'vabie Inventory Equipment Accumulated Ceprecation Accounts payable pe eee “The Temaring Usetur Ife of the equipment i 4 ye ws by esther ABC oF HYZ, There were also ne inter impairment During 20x1, no eividenss wer ‘group determined that there is no good rl statements at year-end ere shown Below ABC'S and XYZ's inowiduel Statements of financial position ‘As at December 31, 20x1 anc co. whine. ASSETS Cash Accounts receivable Inventory Investment in subsidiary Equipment LIABILITIES AND EQUITY ‘Accounts payabie Bones payable “rota! ‘Shere capita! Shere premium petaines earrings Statements of profit or loss For the year ended December 31, 20x Seles 1,200,000 Cost of goods sold opie ates £660,900) | “Gross profit. 549,000 a (360,000) (49,500) (128,000) (72,000) 32,000) 240,00| Reconstruction of financial information P . thee taser rman te a fess acne ie ie tog toc On i Seen te, to een O.00 Ba is WN. LPS ha 3 faves eve carry moved F730.08 huh ronnie MH wie Mey woes aonigneed # (av! uo . ak 720,00 snr eninosy wrensiectione surg tn vase, Goede 0s Scio of ti NR Bee tested found to be wnippined (ie totaty by F3: ad eS * the cotreen yea ‘Sheep's vaparate fnancisi tatamants cegoriet frofk of PEEE.COD fox the www ended Oucemnbar Ih, po, Poem gtirmutnble £6 NCE wes anpropnntely Betermims wt #567 0 aon? 31. Mom much «6 Ine profit of Lam For the year ene Deceretam 2 178,008 1B. 625.000 ¢ 700,000 & 25,000 Mow much ik the consolidates 3,888,000 bt, the proht attributable tb owners of the parent» NCE 7,000 267,006 167,000 398,000, Comprehensive problem Use the following information for the nest ten questions On January 1, S0xi, Peter Co. acquired 90% ownership interest in Semon measure NCI at fel value, NCI was assigned & fair valve of 69 Co. for PABE.000. Petar Ce einen 1 ana iebitvies of XY, Ine were determines by appranal, os toitawn Carrying amounts Fair values Fait value increment 40,0 40,008, Qn Jonuary 3, 20% ‘Simon Co. he fair vaives of the esse! Cas x Accounts receivable 6,000 Inventory 100,000 Equipment 240,000 Accumulates depreciation (80,000), : (24,000) z 336,000 520,000 “184.000 Svea asa ‘The remaining useful life of the equipment is § yeers while the pete Simnen's share capital nas 2 balance of 200,000 Among the transactions of Peter end Simon during 20x were the folowing > Peter's accounts receivable inciud pavabie incluce @ payable to Peter arvounting to #2,000. 7 . gepostted by Simon cirectly to Peter's bark account wich w et reconded by Peter in ts + nas aleendy clearea in Simon's bank account sola goods costing #20,000 to Simon for F128,000. One-trd of tre ne 01d goods costing P40,000 10 Peter for 760,000, One-half the goe fe a receivable from Simon amounting te 712.6) ovference was cue te a check a” ry romans an of Oe. BE, cemain in toventory as of Deceneer ipment tor 20,000. The equipment nas 3% ng useful Me of § years on the Oat co. trom tne apa mareat MF 1, 20x2, Sion sole to Peter mulated depreciation of P26,000 and a rem 4, 20x, Simon Co. purchased 50% of the outstanding Bonds of The ierest income accruing onthe vonas fore yee was received DY gayoble carry an interest ale of 20% and were ong issued by Peter ag aivigends of £160,000. ividends of 80,000. bby P8,000, : enanges in Simon's share capital Peter Sime fromm Pater ce amauet 4