CONSO FS AT THE DATE OF ACQUISTION

NON-CONTROLLING INTEREST
1. FV OR FULL ECONOMIC ENTITY APPROACH- NCI is given

Parent Non-controlling interest

Acquisition Cost xx xx
w/c ever is higher
Fair Value of Identifiable Asset xx xx
Goodwill or Gain on Bargain Purchase xx xx if result is gain ignore
total goodwill

Note: Parent – Allowed GW & GBP

NCI – GW only

2. FV OR FULL ECONOMIC ENTITY APPROACH- NCI is not given

Parent NCI
AC xx xx AC xx
FINA xx xx Less: Control Premium (xx)
Goodwill or GBP xx xx AC w/o CP xx
divided: Controlling Interest rate ÷ xx%
multiply: NCI rate xx%
NCI xx

3. PROPORTIONATE OR MODIFIED ECONOMIC ENTITY APPROACH

Parent NCI
AC xx -
FINA xx xx consider as NCI
Goodwill or GBP xx -

Note:
NCI @ the date of acquisition is not owned by the business but must appear to Conso FS –
Equity section (SHE)

FINA exclude Goodwill

FV method- Unrealized G/L

Cost/Equity Method- G/L
 CONSO FS AT THE DATE OF ACQUISTION

Step Acquisition
- Acquiring control more than one basis
- Previous acquisition must be valued at your latest value FV dapat

Ex. Acquires 25% after three months purchase another 60%

Bali an tanan 85% na

COMBINATION BALANCES IMMEDIATELY AFTER BUSINESS COMBINATION

(CARLA)- use if acquired 100%
(CARNLA)- use if acquired less than 100%, must not have investment income given

C-CAPITAL STOCK
Acquirer: BV of Ordinary Stock of Acquirer
Issued shares at par (an pagacquire gamit han shares)

A- Additional Paid-in Capital

Acquirer: APIC
Excess of par from issued shares
Less: Stock Issuance cost (SIC)- iton SIC dapat tubtub la ha amount han Excess par from issued
shares tas an subra ig iiban ngadto han retained earnings

R- Retained Earnings
Acquirer: RE, beg.
Gain on Bargain Purchases
Less: Direct or Indirect cost
Stock Issuance cost (an salin matapos ig iban ha APIC)

N- Non-controlling Interest

L- Liabilities
Acquirer: BV
Acquired FV
Contingent Consideration
Less: Liabilities related to Acquisition

A- Assets
Acquirer: BV
Acquired FV
Goodwill
Less: Assets used to pay combination
Direct, Indirect, and/or Stock Issuance cost- diri mo na ini igdededuct kun ha FS han acquiree
mayda na investment in sub
 CONSO FS AT THE DATE OF ACQUISTION

S- Shareholder’s Equity
Acquirer: BV of Ordinary Stock of Acquirer xx
Add: Issued shares at par (an pagacquire gamit han shares) xx
Retained Earnings xx
NCI xx
Conso Total equity xx

Conso RE attributable to parent

Acquirer RE xx
PAP xx
Less: Dividend declared parent (xx)
Conso RE xx