Attributable to NCI P28,800

51.
Pan's total comprehensive income from P250,000

own operation -- 2013

Sol’s total comprehensive income from own operation 2013 120,000
Realized profit in beginning inventory 12,000

(P20,000 x 60%)
unrealized profit in ending inventory ( 15,000)

(P30,000 x 50%)

Comprehensive income attributable to

NCI:

Sol's total comprehensive income P120,000

Realized profit in beginning inventory 12,000

Unrealized profit in ending inventory ( 15,000)

Net income from outsiders P117,000

NCI % 20% ( 23,400)

P343,600
Consolidated total comprehensive income attributable to parent

December 31,2013

52. Combined financial statements are prepared for companies that are owned by the same

parent company but are not consolidated. To determine the gross profit in Bee and Cee's

combined statement of comprehensive income, the intercompany profit resulting from Bee's

sales to Cee should be eliminated. Thus, the computation is:

Sales to unrelated companies by Cee P 91,000

Cost of sales to combined entity:

(P100,000 x P65,000/P130,000) ( 50,000)
Gross profit P41,000
53. The equipment is retained within the consolidated entity and should have the balance it

would have had if no sale had taken place. The consolidated balances are achieved through

elimination entries to account for the intercompany gain.

The following are the balances the company would have had:

Cost P100,000

Accumulated depreciation:

On date of acquisition P 25,000

For 1 year 5,000 P 30,000

When preparing consolidated financial statements, the objective is to restate the accounts as if
the intercompany transactions had not occurred. Therefore the 2013 gain on sale of machine of
P50,000 [P900,000 -- (P1,100,000 –P250,000)] must be eliminated, since the consolidated
entity has not realized any gain. In, effect, the machine must be reflected on the consolidated
statement of financial position at 1/1/013 at Poe's cost of P1,100,000, and accumulated
depreciation of P250,000, instead of at a new "cost" of P900,000. For