Leave a message then pass it on!!

There are people who believe in us so, we should

believe in ourselves too. Let us stay firm to our truths
and dreams! Konting push nalang!

Ann C.

Carpe Diem! Take the opportunity to do something at

the present moment without worrying about the
future

Christian F.
Cash On Hand Cash Equivalent
Original/Acquired 3 months or less befor
Traveler's Check Treausry Bills maturity
Manager's Check Time Deposit
Chashiers Check Certificate of Deposit
Money Order Commercial Paper
Bank Draft Money Market Placements Certificate
Money Market Savings

Cash in Bank
Current Account
Savings Account
Unrestricted Compensating Balance
Month 1 Receipts
Cash Funds Unadjusted xx xx
Petty Cash DIT Month 1 xx (xx)
Dividend Fund DIT Month 2 xx
Interest Fund OC Month 1 (xx)
Revolving Fund OC Month 2
Tax Fund Adjusted xx xx

Trade Receivables Notes Receivable

Revenue Upon Delivery Measurement
FOB Shipping point Initial
Installment Sale Short Term Face Value
Lay away Sale
Revenue Before Delivery Long Term FV +Direct Cost
Bill and Hold
Agriculture produce Loan Receivable
No Revenue despite delivery Measurement
Sale with repurchase Initial
Sale on approval/trial Fair/ PV Add: Direct Cost
Less: Org Fees

Receivable Financing
Factoring Discounting
Amount factored xx Maturity Value
Service Fee (xx) Principal + (Principal x rate x time)
Factors Hold back (xx) Discount
Interest Charged (xx) Maturity Value x Discount Rate x Time unu
Net Proceeds xx Proceeds
Maturity Value - Discount
Carrying Value
Principal + (Principal x rate x time Used)
Gain or Loss
Proceeds - Maturity Value
Inventory
Initial At Cost
Subsequent Lower of Cost & Net Realizable Value

Periodic System Perpetual System

FIFO FIFO

Weighted Average Moving Average

TGAS in PESO Units Unit Price Amount
TGAS in UNITS A B (A x B)
*Purchase A B (A x B)
A C/A C = 1st + 2nd)
Purchase Commitments
*Recognize Loss
*Recgonize Gain only to the extent of loss
*Amount of purchase: Price at Settlement Date

Equity
Held for trading Yes FA FV TPL
Held For sale Yes FA FV TOCI

% of ownership Preferred Ordinary

< 25% FV PL PL / OCI
20% - 50% or Associate
50% -100% FV OCI Subsidiary

Stock Rights
1.) FV of stock Right
2.) Theoretical Value
1.) Rights on
FV of stock Rights on - Exercise Price
# of rights to purchase 1 share + 1

2.) Ex Rights
FV of stock Rights on - Exercise price
# of rights to purchase 1 share

Debt Collect contractual cash lfows No FA FV TPL

Sell financial Asset No Amortized Cost

Classification
Initial Subsequent Changes
FV PL Fair Value Fair Value PL
FV OCI FV + Trans Cost Fair Value OCI
Amortized Cost FV + Trans Cost Amortized Cost -

No partial disposal of FA FV OCI Debt Sec

Investment in associate
Investment in Associate
Beg Bal Dividends distributed
Share in NI Under valuation of Inventory
Under valuation of Land
Inventory Depreciable Asset
Land
Dep. Asset

Land and Building Biological Assets

Purchase Price
Brokers Commission
Excrow
Relocation
Mortgages
Taxes Measurement
Payments to tenants to go away
Option on contract
Cost to sell includes:

Cost of old building

Unusable
Allocate to land Gain or losses
Tear down for new building
Demolition cost allocate to new building

Depreciation Methods

Straight Line method

Cost - Salvage Value
Useful life

Composite %
Annual Straight Line Method
Total Cost of Asset

Sum of years digits

Estimated Life
Sum of digits of the life
Activity Based Depreciation
Cost of Asset x Actual Avtivities
Estimated Activities
nal/Acquired 3 months or less before
maturity Measurements

Provisions

Disbursement Month 2 Likelyhood

xx xx > 95%

xx 51% -95%
(xx)
xx (xx) 20% - 50%
xx xx
< 20%

eivable Measurement
ment
Subsequent
Face Value

Amortized Cost

ivable
ment
Subsequent *Actual Disctrob
Amortized Cost

Net Cost = Cost of Prem

al + (Principal x rate x time)

ty Value x Discount Rate x Time unused Accounting For Income

Permanent Differences
ty Value - Discount

al + (Principal x rate x time Used)

ds - Maturity Value
Retail Method

Average Method
TGAS @Cost
TGAS @Retail

FIFO TGAS @Cost Excluding Beg Inventory

TGAS @Retail Excluding Beg Inventory

Conservative
TGAS @Cost
TGAS @Retail - Net Markdowns
Cost Retail
Beg Inventory xxx xxx Plan Asset x Discount R
Add: Purchase xxx xxx Proj. Ben. Obl x Discou
Add Frieght xxx
Less: Purchase Return (xxx) (xxx) Current Service Cost
Less: Allowance (xxx) Past Service cost
Add: Dep. Transfer In xxx xxx Interest Expense
Mark Up xxx Interest Income
Mark Up Cancel (xxx) Employee Benefit Expe
MarK Down (xxx)
Mark Down Cancel xxx Actual Return
Goods Available xxx xxx Interest Income
Sales (xxx) remeasurement loss
Sales Return xxx
Employee Discount (xxx)
Loss (xxx)
Ending Inventory xxx

*Sales Discount and Allowances Ignored*

 Bearer Animals
Consumable Plants
Consumable Animals
(Bearer plants are part of PPE)

Initial FV Less cost to sell

Subssequent FV Less cost to sell
o sell includes:
Commissions to brokers
Levies by regulatory agencies
Transfer taxes and duties

1.) Price Change

Beg. Age x (Change in price) x Quantity
2.) Physical Change
(End.Price x End Age) - (Ending Price x Beg Age) x Quantity
Add: FV less cost to sell of new born @Date of birth
 Notes Paybale Loans Payable
Measurements FV PL FV - Organizational Fees
Amortized Cost Amortized Cost

Provisions Journal Entry

Recognition Criteria Expense / Loss
Present Obligation Est. Liability
Probable *When Criterias are met
Measurable Asset
Est. Liability

Likelyhood Outcome If liability If asset

Certain Accrue Accrue

Probable Accrue Disclose

20% - 50% Possible Disclose to FS Ignore

Remote Ignore Ignore

Measurement
General Rule
MOST LIKELY AMOUNT

Exc Probability Expected Value

Range Outcome Mid point

Premiums Liabs
*Actual Disctrobution *Estimated Distributions

Net Cost = Cost of Premiume - Customer Reimbursement

Accounting For Income Tax Temporary Differenc

Permanent Differences
Nontaxable income Future Taxable Amount
Life insurance proceeds Accounting Income > Taxable Income
Income subject to final Tax
Interest income from banks Assets Amount > Tax Base
Gains subject to capita lgains tax
Inter corporate dividends Liability Amount < Tax Base
 NonDeductible expenses
Fines, Penalties Accounting Income
Loss on property expropriation Income before Temp Diff xxx
Goodwill impairment Depreciation (xx)
Life insurance premiums Expenses (xx)

Income after Temp Diff xxx

Income After Temp Diff accounting Inc x Tax Rate = Tax Expense
Income After Temp Diff Taxable Inc x Tax Rate = Tax Payable
Tax Expense > Tax Payable = Deferred Tax Liability
Tax Expense < Tax Payable = Deferred Tax Asset

Plan Asset x Discount Rate = Interest Income Fair Value Plan Asset Beg xxx
Proj. Ben. Obl x Discount Rate = Interest Expense Contribution xxx
Actual Return xxx
Current Service Cost xxx Benefits Paid (xxx)
Past Service cost xxx Fair Value Plan Asset End xxx
Interest Expense xxx
Interest Income (xxx) Proj. Ben Obl Beg xxx
Employee Benefit Expense Current Service Cost xxx
Past service Cost xxx
Actual Return xxx Interest Expenses xxx
Interest Income (xxx) Benefits Paid (xxx)
remeasurement loss Proj. Ben Obl End xxx
Temporary Differences

Future Deductible Amount

Accounting Income < Taxable Income

Amount < Tax Base

Amount > Tax Base

 taxable Income
= xxx

≠ xxx

Tax Rate = Tax Expense

Rate = Tax Payable

Bonus

Bonus Before Bonus and Tax

Bonus = B% x Profit
Tax = T% (Profit - Bonus)

Bonus Before Tax but After Bonus

Bonus = B% (Profit - Bonus)
Tax = T% (Profit - Bonus)

Bonus Before Bonus but After Tax

Bonus = B% (Profit - Tax)
Tax = T% (Profit - Bonus)

Bonus Before Bonus and Tax

Bonus = B% (Profit - Bonus - Tax)
Tax = T% (Profit - Bonus)
Standard Costing

Materials
Actual Price x Actual Quantity
Material Price Variance
Standard Price x Actual Quantity
Material Quantity Variance
Standard Price x Standard Quantity

Labor
Actual Rate x Actual Hours
Labor Rate Variance
Standard Rate x Actual Hours
Labor Efficiency Variance
Standard Rate x Standard Hours

Variable Overhead
Actual Variable overhear
Spending Variance
(Var.Overhead Rate x Actual Quanitity)
Efficiency Variance
(Var. Overhead Rate x Standard Quantity)

Fixed Overhead
Actual Fixed Overhead
Spending Variance
Budgeted Fixed Overhead
Volume Variance
Standard Fixed Overhead

Variable Costing
Sales xxx Sales
Less Variable COGS (xxx) Less COGS
Variable SGA (xxx) Gross Profit
Contribution Margin xxx Less SGA
Less Fixed Mfg (xxx) Operating Income
Fixed SGA (xxx)
Operating Income xxx
Joint and by Products
1 2 3 4 5 6 7
Prod. Units Produced Final MV Total MV Add'l Cost Disp. Cost NRV
A xxx x xxx xx x xxx
B xxx x xxx xx x xxx
C xxx x xxx xx x xxx
(2 x 3) 4 - (5+6)

Joint Cost Allocated Total NRV of Each Product x Joint cost

Total NRV of All products
 3 Way Overhead
Actual VOH + Acutal FOH
Spending Variance
(Actual Quantity x VOHrate) + Budgeted FOH
Efficiency Variance
(Standard Quantity x VOHrate) + Budgeted FOH
Volume Variance
(Standard Quanitity x VOHrate) + (Standard Quantity x FOHrate)

2 Way Overhead
Actual VOH + Acutal FOH
Budget Variance
(Standard Quantity x VOHrate) + Budgeted FOH
Volume Variance
(Standard Quanitity x VOHrate) + (Standard Quantity x FOHrate)

1 Way Overhead
Actual VOH + Acutal FOH
Total Overhead Variance
(Standard Quanitity x VOHrate) + (Standard Quantity x FOHrate)

Break Even Units

Absorption Total Fixed Cost
xxx Selling Price - Total Variable
(xxx)
Gross Profit xxx Breakeven for sales
(xxx) Total fixed Cost
Operating Income xxx Contribution Margin %

Budgeted Profit
Total Fixed Cost _ Target Profit
Contribution Margin
 Sales Mix
8 9 A B C
Share in joint cost Total Price Variable Cont. Marg
xxx xxx Product A xxx xx A-B
xxx xxx Product B xxx xx A-B
xxx xxx
(5+8) BEP = Fixed Cost
WCMR Total
 Overhead rate = Estimated overhead
Activity Level

Overhead applied = Activity x Overhead Rate

ing Variance
Acutal Overhead xxx
ncy Variance Applied Overhead xxx
xxx *If positive, under applied
*If negative, overapplied

Least Square Method

1.) ∑y = na + b∑x
2.) ∑ xy = ∑xa + b∑x^2

Beginning Raw Materials xxx

Add:Purchases xxx
Add: Freight xxx
Total Raw Materials Available xxx
Less: Ending Raw Materials (xxx)
Overhead Variance Raw Materials Used xxx
Direct Labor xxx
Factory Overhead xxx
Total Product Cost xxx
Add: WIP Beginning xxx
Total Products in process xxx
Less: WIP Ending (xxx)
Cost of Goods Manufactured xxx
Add: Finished Goods Beginning xxx
Total Goods Available For Sale xxx
Less:Finished Goods Ending (xxx)
Cost of Goods Sold xxx

Operating Lever
Contribution Margin
Net income

Change in operating Income

Change in Net Income
 D E F
Mix WCMR BEP Units
x CxD BEP x Mix
x CxD BEP x Mix
XXX
Current Ratio = Current Assets Trade Receivable turnover
Current Liabilities

Acid Test = Cash + AR + Short term investments Collection Period

Current Liability

Cash Ratio = Cash + Market Sec

Current Liabilities

Working Capital to = Working Capital Merchandise Turnover

asset Total Assets

Finished Goods Invty

Payback period = Original Investment
Annual Cash flow
Goods in process turnover
Return on investment = Operating Income
Ave. Operating Assets
Raw Mats Turnover

Working capital turnover

Trade Receivable turnover = Net Credit Sales Debt ratio = Total Liabilities
Av. Trade Rec Total Assets

Collection Period = 360 days Equity Ratio = Total Equity

Rec. Turnover Total Asset

= Acc. Receivables Debt to Equity = Total Liabilities

Net Sales / 360 Total Equity

Merchandise Turnover = Cost of sales Book value per share = Ordinary Shares
Ave. Merch Invty # of outstanding shares

Finished Goods Invty = Cost of Sales Gross profit margin = Gross profit
Ave Finished Goods Net Sales

Goods in process turnover = Cost of goods manufactured Operating Profit = Operating Profit
Ave. Goods in process Net Sales

Raw Mats Turnover = Raw Mats Used Net Profit Margin = Net profit
Ave. Raw Mats Net Sales

Working capital turnover = Net Sales

Ave. Working Cap
Total Liabilities
Total Assets

Total Equity
Total Asset

Total Liabilities
Total Equity

Ordinary Shares
# of outstanding shares

Gross profit
Net Sales

Operating Profit
Net Sales

Net profit
Net Sales
Final Tax RC/RA/NRC NRA-ETB NRA-NETB
Interest/ Yields Range of Taxable Income
Short Term 20% 20% 25% Over
Long Term Excempt Excempt 25% -
Royalties 250,000.00
In General 20% 20% 25% 400,000.00
Lit. Works 10% 10% 25% 800,000.00
Prizes 2,000,000.00
10k or less GR GR 25% 8,000,000.00
More than 10k 20% 20% 25%
Winnings
In General 20% 20% 25%
Lotto 10k or less Excempt Excempt 25%
More than 10k 20% 20% 25%
Dividends
Dom. Corp 10% 10% 25%
Foreign Corp GR GR 25%
Share in Net Income
Partnership 10% 120% 25%
Joint Venture 25%
 Tax Due = A + (B x C)
ange of Taxable Income Type of Benefit Income
Not Over Basic Amount Additional Rate Of Excess over Ordinary Income
250000 - - -
400,000.00 - 20.00% 250,000.00
800,000.00 30000 25.00% 400,000.00
2,000,000.00 130000 30.00% 800,000.00
8,000,000.00 490000 32.00% 2,000,000.00
- 2410000 35.00% 8,000,000.00 Passive Income

Capital Gains

Type of Benefit Income

Ordinary Income

Passive Income

Capital Gains

Passive Income

Capital Gains
 Individual Income Tax
ype of Benefit Income
Baisc Tax Compensation Income
Income from self employment
Income from profession
Income from sale or dealing properties
Misc. Income not subject to Final and capital gains tax

Final Tax Dividend Income

Interest Income
Prizes
Winnings
Royalties

Capital Gains Tax Sale of shares of stock in domestic corop not traded in stock exchange
Sale of real property not used for business located ing Ph

Corporate Income Tax

ype of Benefit Income
RCIT Business Income
MCIT Income frome sale and dealing of properties
OCIT Misc. Income not subject to Final and capital gains tax

Final Tax Dividend Income

Interest Income
Royalty Income

Capital Gains Tax Sale of shares of stock in domestic corop not traded in stock exchange
Sale of real property not used for business located ing Ph

Corporate Income Tax

Dom. Corp Res. For. Corp
Interest Income
Yeild from bank deposit
Deposit substitute 20% 20%
Money Market Placements
Trust funds

Interest Income from FCDC deposit 15% 7.50%

Royalties 20% 20%
Intercorporate dividends from a domestic corporation

Sale of shares of stock in domestic corop not 15% of net

traded in stock exchange capital Gain First 100k = 5%, Amount in excess = 10%
Sale of shares of stock in domestic corop not 15% of net
traded in stock exchange capital Gain First 100k = 5%, Amount in excess = 10%
6% NA
Sale of real property not used for business located ing Ph
 Graduated Tax Table or
25%

Various rates or 25%

15% of Cap. Gains

6% of SP/FMV

30% if Net Income

2% of Gross Income
15% of Gross income

15% of Cap. Gains

6% of SP/FMV

NonRes. For. Corp

30%

30%
30%

00k = 5%, Amount in excess = 10%

00k = 5%, Amount in excess = 10%
NA
Partnership Formation

Assets
Cash Face Value
Accounts Receivable Gross of ADA
Inventory Lower of Cost and Net Realizable Value
Land
Agreed Value, Fair
Depreciable Asset Value, Appraised
Non Current Asset Value, Book Value

Liability
Not Assumed if Silent

Capital
Excess goes to capital of parter

Operations
Net Income Net Loss
Salaries x x
Interest x x
Bonus x x
Remaining x -

Beg Capital Balance xxx

Add: Addt'l Investment xxx
Less: Withdrawal (xxx)
Share in Net Income/ Loss xxx
Ending Capital Balance xxx

Only When base computation for bonus is positive

Following the order of priority for allocation of balance

Profit Loss
Agreed Sharing Agreed Sharing
Original Capital Balance Profit Sharing
Equal Sharing Original Capital Balance
Equal Sharing

Dissolution
1.) Admission of a new Partner 2.) Retirement/Death of a partner
a.) Direct purchase from old partners
b.) Direct investment by new partners
Partner's Interest
Bonus Method
 TCC - TAC = B
Partner 1 xx xx xx
Partner 2 xx xx xx Gain or Loss
xx xx xx
New Partner xx xx xx
amount to xx = xx ZERO
be
invested
TCC Total Contributed Capital
TAC Total Agreed Capital
 Noncontrolling interest

Priority 1 = Fair value of NCI given to the problem but it should not be lower tha
Non-controlling interest's proportionate share of Subsidairy'

If fair value of NCI given to the problem is lower than NCI m

of Subsidiary's identifiable net assets use the latter.

Compuation of NCI measured in proportionate share of Subsidiary's i

Subsidiary net assets at Fair Value
Multiply by: Noncontrolling interest
Fair value of NCI proportionate share in Subsidiary identi

Priority 2 = If Fair value of NCI is not given or unknown

Acquistion cost
Divided by: Controlling interest
Total fair value of business
Multiply by: Noncontrolling interest
Fair value of Noncontrolling interest

Note: But again the computed Fair value of Noncontrolling interest sh

than the fair value of NCI in proportionate share in Subs

Note: We apply whichever is higher rule: Part of the new provisio

an amount that is lower than the fair value of NCI measure
Subsidiary's identifiable net assets. We use whichever

Result of acquisition

Acquisition cost (Consideration paid)

FMV of NCI
FMV of old investment in same company acquired ( less than 50%), i
Contingent liabiilty
Total
Less: FMV of Subsidiary Net Assets (100%)
Goodwill/Gain from acquisition

Consolidated total Assets

ment/Death of a partner Parent total assets (book value)

Subsidairy total assets (fair value) exclusive of goodwill, if any
Beg. Capital Goodwill - result from acquisition
Add or Less: Share in P&L Payment - taken from the assets of the acquirer
Add or Less: Loan Balance Consolidated total assets
Add or Less: Share in revaluation
Consolidated retained earnings
Partner's Interest
vs Parent retained earnings before acquisition
Actual Payment to reetiring partner Add: Gain from acquistion, if any
Total
Less: Expenses (Direct cost, indirect cost)
Consolidated retained earnings

Consolidated common stock

Parent common stock before acqquisition

Add: New issued shares to acquire subsidairy @ Par value
Consolidated Common Stock

Consolidated additional paid in capital

Parent additional paid in capital

Add: New issued share to acquire subsidiay - excess of par
Total
Less: Stock issue cost, if any
Consolidated additional paid in capital

Consolidated stockholders' equity

Consolidated common stock

Consolidated additional paid in capital
Consolidated retained earnings
Noncontrolling interest
Consolidated stockholders' equity
 Consolidated net income

but it should not be lower than the NCI - measured at Parent net income
rtionate share of Subsidairy's identifiable net assets @ Fair Value. Less: Dividends income received from Subsidiary
Parent income from it's own operation
problem is lower than NCI measured at proportionate share Less: Impairment loss on goodwill, if any
ssets use the latter. Parent adjusted net income
Add: Subsidiary adjusted net income
onate share of Subsidiary's identifiable net assets. Subsidiary reported net income
xxx +/- Amortization
x% - impairment loss on goodwill, if any
share in Subsidiary identifiable net assets xxx Consolidated net income

Income from subsidiary

xxx Subsidiary reported net income

x% +/- Amortization
xxx - impairment loss on goodwill, if any
x% Subsidiary adjusted net income
xxx Multiply: Controlling interest
Income from subsidiary
of Noncontrolling interest should not be lower than
oportionate share in Subsidiary's identifiable net assets. Consolidated net income attributable to parent

ule: Part of the new provision, NCI should not have Parent net income
e fair value of NCI measured in proportionate share in Less: Dividends income received from Subsidiary
ssets. We use whichever is higher. Parent income from it's own operation
Less: Impairment loss on goodwill, if any
Parent adjusted net income
Add: Income from subsidiary #2
xxx Consolidated net income attributable to parent
xxx
acquired ( less than 50%), included xxx NCI in net income of Subsidiary/ Consolidated net income
xxx
xxx Subsidiary reported net income
xxx +/- Amortization
xxx - impairment loss on goodwill, if any
Subsidiary adjusted net income
Multiply: Noncontrolling interest
NCI in net income of Subsidiary
xxx
ive of goodwill, if any xxx Consolidated retained earnings
xxx
(xxx) Parent retained earnings - January 1, current year
xxxx Add: Gain from acquistion, if any
 Consolidated net income att
Total
Less: Dividends declared - parent only
xxx Consolidated retained earnings - December 31,
xxx
xxx Noncontrolling interest
xxx
xxx First Year
Noncontrolling interest - January 1, current year
Add: NCI in net income of Subsidiary/Consolidated
Total
xxx Less: Dividends declared x Noncontrolling interest
dairy @ Par value xxx Noncontrolling interest - December 31 current y
xxx
Note: You must noted the initial Noncontrolling interest amo
Because that is always your beginning

xxx
iay - excess of par xxx
xxx
xxx
xxx

xxx
xxx
xxx
xxx
xxx
 Consolidated Sales

xxx Parent
me received from Subsidiary xxx Sabsidiary
it's own operation xxx Total
s on goodwill, if any xxx Less: Intercompany sales (Downstre
xxx Consolidated Sales
sted net income
y reported net income xxx
xxx Consolidated cost of goods sold
ent loss on goodwill, if any xxx First Year
xxx Parent
Subsidiary
Total
Intercompany sales (Downstream s
xxx Amortization of excess (inventory),
xxx Unrealized gross profit in ending inv
goodwill, if any xxx Cosolidated cost of goods sold
xxx
x% Second Year
xxx Parent
Subsidiary
butable to parent Total
Intercompany sales (Downstream s
xxx Amortization of excess (inventory),
me received from Subsidiary xxx Realized gross profit in beginning in
it's own operation xxx Unrealized gross profit in ending inv
s on goodwill, if any xxx Cosolidated cost of goods sold
xxx
xxx
come attributable to parent xxx Consolidated Inventory
Parent
ry/ Consolidated net income attributable to NCI Subsidiary
Add: Excess of inventory FMV over
xxx Total
xxx Less: Unrealized gross profit in endi
goodwill, if any xxx Consolidated inventory
xxx
ling interest x%
of Subsidiary xxx Consolidated net income
First Year
Parent net income from own opera
Impairment loss, if any
ings - January 1, current year xxx Unrealized profit in ending inventor
uistion, if any xxx Parent adjusted net income
 Consolidated net income attributable to parent - #3 xxx xxx Add: Subsidiary adjusted net incom
xxx Subsidiary reported net i
ared - parent only xxx +/- Amortization
ned earnings - December 31, current year xxx Impairment loss, if any
Unrealized profit in endin
Consolidated net income

Second Year
est - January 1, current year xxx Parent net income from own opera
me of Subsidiary/Consolidated net income attributable to NCI xxx Impairment loss, if any
xxx Realized profit in begining inventory
ared x Noncontrolling interest xxx Unrealized profit in ending inventor
rest - December 31 current year xxx Parent adjusted net income
Add: Subsidiary adjusted net incom
al Noncontrolling interest amount on the date of acquisition. Subsidiary reported net i
that is always your beginning balances. +/- Amortization
Impairment loss, if any
Realized profit in beginin
Unrealized profit in endin
Consolidated net income

Income from subsidiary

First Year
Subsidiary reported net income
+/- Amortization
Impairment loss, if any
Unrealized profit in ending inventor
Subsidiary adjusted net income
Multiply by: Controlling interest
Income from subsidiary

Second Year
Subsidiary reported net income
+/- Amortization
Impairment loss, if any
Realized profit in begining inventory
Unrealized profit in ending inventor
Subsidiary adjusted net income
Multiply by: Controlling interest
Income from subsidiary

Consolidated net income attributable to par

First Year
 Parent net income from own opera
Impairment loss, if any
Unrealized profit in ending inventor
Parent adjusted net income
Add: Income from subsidiary
Consolidated net income attributa

Second Year
Parent net income from own opera
Impairment loss, if any
Realized profit in begining inventory
Unrealized profit in ending inventor
Parent adjusted net income
Add: Income from subsidiary
Consolidated net income attributa

NCI in net income of Subsidiary/ Consolidat

First Year
Subsidiary reported net income
+/- Amortization
Impairment loss, if any
Unrealized profit in ending inventor
Subsidiary adjusted net income
Multiply by: Noncontrolling interest
NCI in net income of Subsidiary/C

Second Year
Subsidiary reported net income
+/- Amortization
Impairment loss, if any
Realized profit in begining inventory
Unrealized profit in ending inventor
Subsidiary adjusted net income
Multiply by: Noncontrolling interest
NCI in net income of Subsidiary

Consolidated retained earnings

Parent retained earnings - January 1
Add: Gain from acquistion, if any
Consolidated net income
Total
Less: Dividends declared - parent on
Consolidated retained earnings -
 xxx
xxx
rcompany sales (Downstream sales + Upstream sales) xxx
xxx
xxx

of goods sold

xxx
xxx
pany sales (Downstream sales + Upstream sales) xxx
tion of excess (inventory), if any (xxx)
d gross profit in ending inventory xxx
ted cost of goods sold xxx
xxx

xxx
xxx
pany sales (Downstream sales + Upstream sales) xxx
tion of excess (inventory), if any (xxx)
ross profit in beginning inventory xxx
d gross profit in ending inventory (xxx)
ted cost of goods sold xxx
xxx

xxx
ss of inventory FMV over BV during acquisition that are remained unsold, if any xxx
xxx xxx
ealized gross profit in ending inventory (Downstream + Upstream) xxx
ated inventory xxx
xxx

t income from own operation, exclusive of dividends income received from Subsidiary
nt loss, if any xxx
d profit in ending inventory ( Downstream sale) (xxx)
justed net income (xxx)
 idiary adjusted net income xxx
Subsidiary reported net income
+/- Amortization xxx
Impairment loss, if any (xxx)
Unrealized profit in ending inventory ( Upstream sale) (xxx)
ated net income (xxx) xxx
xxx

t income from own operation, exclusive of dividends income received from Subsidiary
nt loss, if any xxx
profit in begining inventory (xxx)
d profit in ending inventory xxx
justed net income (xxx)
idiary adjusted net income xxx
Subsidiary reported net income
+/- Amortization xxx
Impairment loss, if any (xxx)
Realized profit in begining inventory (xxx)
Unrealized profit in ending inventory xxx
ated net income (xxx) xxx
xxx

y reported net income

xxx
nt loss, if any (xxx)
d profit in ending inventory ( Upstream sale) (xxx)
y adjusted net income (xxx)
by: Controlling interest xxx
rom subsidiary x%
xxx

y reported net income

xxx
nt loss, if any xxx
profit in begining inventory (xxx)
d profit in ending inventory xxx
y adjusted net income (xxx)
by: Controlling interest xxx
rom subsidiary x%
xxx

come attributable to parent

t income from own operation, exclusive of dividends income received from Subsidiary
nt loss, if any xxx
d profit in ending inventory ( Downstream sale) (xxx)
justed net income (xxx)
me from subsidiary xxx
ated net income attributable to parent xxx
xxx

t income from own operation, exclusive of dividends income received from Subsidiary
nt loss, if any xxx
profit in begining inventory (xxx)
d profit in ending inventory xxx
justed net income (xxx)
me from subsidiary Upstream xxx
sales
ated net income attributable to parent xxx
xxx

of Subsidiary/ Consolidated net income attributable to NCI

y reported net income

xxx
nt loss, if any (xxx)
d profit in ending inventory ( Upstream sale) (xxx)
y adjusted net income (xxx)
by: Noncontrolling interest xxx
t income of Subsidiary/Consolidated net income attributable to NCI x%
xxx

y reported net income

xxx
nt loss, if any xxx
profit in begining inventory (xxx)
d profit in ending inventory xxx
y adjusted net income (xxx)
by: Noncontrolling interest xxx
t income of Subsidiary x%
xxx

ned earnings
tained earnings - January 1, current year
from acquistion, if any xxx
Consolidated net income attributable to parent xxx
xxx xxx
dends declared - parent only xxx
ated retained earnings - December 31, current year xxx
xxx
Audit of Petty Cash

Petty Cash Accounted for Custodian's Accountability

Coins and currencies xx Petty Cash Fund ledger balance
Employee Contributions xx Petty Cash impurities
Unclaimed Salaries xx Employee contributions
Checks for deposit xx Collections of accounts receivable
Stale Checks xx Unclaimed salary
Post Dated Checks xx Stale Check
Unreplenished Checks xx Company's check in payment of liability
Accomodating Checks xx

Audit of Inventory

Sales Receivable Purchase Payables Inventory

a.) xx xx (xx)
b.) xx xx xx
c.) (xx) (xx) xx
d.) (xx) (xx) (xx)

COGS Gross Net Income

Beginning Inventory Overstated Over Under Under
Understated Under Over Over
Ending Inventory Overstated Under Over Over
Understated Over Under Under
Expense Net Inc. Retained E.
Accrued Expense Understated Under Over Over
Overstated Over Under Under
Expense Net Inc. Retained E.
Prepaid Exp. Understated Over Under Under
Overstated Under Over Over
Revenue Net Inc. Retained E.
Deferred Rev. Understated Over Over Over
Overstated Under Under Under
 Depreciation

Cost - Residual Value

Straight Line Method
ledger balance xx Useful Life
xx
xx (100% / Life) x 2
Double Declining
ccounts receivable xx Note: No Salvage Value
xx
xx Useful Life
Sum of Years
k in payment of liability xx Sum of Years (4 years: 1+2+3+4)
x Cost - Salvage Value