ABUSCOM FINAL OUTPUT 4: CONSOLIDATED FINANCIAL STATEMENTS

MAC BRUEN SERVAÑA-IBAÑEZ BSA-3 SECTION CODE 257

PHINMA CORPORATION AND SUBSIDIARY(STENIEL COMPANY)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED DECEMBER 31,2021
ASSETS:
Current Assets P 145,000
Non-Current Assets 486,000
Goodwill 40,000
TOTAL ASSETS P 671,000

LIABILITIES:
Current Liabilities P 95,000

SHAREHOLDERS' EQUITY:
Equity attributable to Parent:
Ordinary Share P 300,000
Retained Earnings 221,600
Total Parent's SHE 521,600
Non-Controlling Interest 54,400
TOTAL SHAREHOLDERS' EQUITY 578,500
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY P 671,000
 PHINMA CORPORATION AND SUBSIDIARY(STENIEL COMPANY)
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31,2021

Sales P 250,000
Expenses (185,000)
Consolidated Adjustments:
Undervalued Fixed Asset (2,000)
Unrealized Profit for Ending Inventory (40,000)
Unrealized Gain-Equipment (8,000)
Piecemeal Gain-Equipment 2,000
NET INCOME P 17,000

NOTES TO FINANCIAL STATEMENTS

CI-PHINMA
OWNERSHIP INTEREST 1 80% NCI-STENIEL 20%
ACQUISITION COST 310,000 250,000 60,000

BINA (250,000) (200,000) (50,000)

EXCESS OF COST OVER BV 60,000 50,000 10,000

ALLOCATED AS:  

UVA-FIXED ASSET (20,000) (16,000) (4,000)

GOODWILL, 1/1/21 40,000 34,000 6,000

LESS: IMPAIRMENT LOSS-
2021 -  

GOODWILL, 12/31/21 40,000    

It is evident in the problem that there is a difference between the investment in subsidiary account and the acquisition cost of the parent, since
cost method is used, it is presumed that the difference is considered the CONTROL PREMIUM of the Parent, hence :
Acquisition Cost of the Parent: 250,000 from 240,000
Total Acquisition Cost BOTH Parent and NCI: 310,000 from 300,000
Hence, the goodwill to the Parent will be also affected by the effect of 10,000