AN INTRODUCTION TO

CONSOLIDATED
FINANCIAL STATEMENT
 CONTENTS
Business Combinations
1 Consummated Through Stock
Acquisitions 5 Consolidated Income Statement

2 Consolidated Balance Sheet at

Date of Acquisition 6 Push-Down Accounting

3 Consolidated Balance
After Acquisition
Sheets
7 Preparing a Consolidated Balance
Sheet Worksheet

4 Assigning Excess to Identifiable

Net Assets and Goodwill 8 Exercises
 1
Business Combinations
Consummated Through Stock
Acquisitions
Consolidated Balance Sheet
at Date of Acquisition 2
 Parent Acquires 100% of Subsidiary at Book Value
Pop Corporation mengakuisisi 100% kepemilikan Son Corporation pada nilai buku dan nilai
wajar yang sama, yaitu $80,000 pada 1 Januari 2021.
Separate Balance Sheets Elimination
Consolidated Balance Sheet
(in thousands)
Pop Son Dr. Cr. Pop & Son

Cash $40 $20 $60

Other curr. assets 90 30 120
Plant assets, net 120 80 200
Investment in Son 80 0 80 0
Total $330 $130 $380
Accounts payable $40 $30 $70
Other curr. liabilities 50 20 70
Capital stock 200 60 60 200
Retained earnings 40 20 20 40
Total $330 $130 $380
 Parent Acquires 100% of Subsidiary at Book Value

Untuk menyiapkan Balance Sheet, eliminasi:

1. Akun Investment in Son (Pembukuan Pop)
2. Akun Stockholders’ equity (Pembukuan Son)

Jurnal eliminasi:
Capital stock-Son (-SE) $60
Retained earnings-Son (-SE) 20
Investment in Son (-A) $80
 Parent Acquires 100% of Subsidiary-With Goodwill
Pop mengakuisisi 100% kepemilikan Son seharga $100,000 pada 1 Januari 2021.
BV = FV
(in thousands)
Son Balance Cost of acquisition $ 100,000
Sheet
Cash $20 Book Value 80,000
Other curr. assets 30 *($60,000+20,000)
Plant assets, net 80
Excess cost over BV $20,000
Investment in Son 0
Total $130
Allocated to Goodwill $20,000
Accounts payable $30
Other curr. liabilities 20
Capital stock 60
Retained earnings 20
Total $130
 Parent Acquires 100% of Subsidiary-With Goodwill
Separate Balance Sheets Elimination
Consolidated Balance Sheet
(in thousands)
Pop Son Dr. Cr. Pop & Son

Cash $20 $20 $40

Other curr. assets 90 30 120
Plant assets, net 120 80 200
Investment in Son 100 0 100 0
Goodwill 0 0 20 20
Total $330 $130 $380
Accounts payable $40 $30 $70
Other curr. liabilities 50 20 70
Capital stock 200 60 60 200
Retained earnings 40 20 20 40
Total $330 $130 $380
 Parent Acquires 100% of Subsidiary-With Goodwill

Untuk menyiapkan Balance Sheet, eliminasi:

1. Akun Investment in Son (Pembukuan Pop)
2. Akun Stockholders’ equity (Pembukuan Son)

Jurnal eliminasi:
Capital stock-Son (-SE) $60
Retained earnings-Son (-SE) 20
Goodwill (+A) 20
Investment in Son (-A) $100
 Non Controlling Interest
Entitas induk memiliki kepentingan pada entitas anak kurang dari 100%
 Kepentingan nonpengendali (NCI) merepresentasikan pemegang saham minoritas.
 Bagian dari ekuitas pemegang saham
 Diukur dengan nilai wajar, berdasarkan harga perolehan entitas induk.

Contoh: Entitas induk membayar $40,000 untuk mendapatkan kepentingan 85%.

 Nilai tersirat (implied value) atas nilai investee keseluruhan adalah $40,000/85% =
$47,059.
 Maka, bagian pihak minoritas = 15% x $47,059 = $7,059 (NCI)
 Non Controlling Interest
Pop mengakuisisi 90% kepemilikan Son dengan harga $90,000 pada saat Son memiliki
capital stock $60,000 dan retained earnings $20,000. BV=FV

Cost of acquisition $ 90,000 Jurnal eliminasi:

Implied Value $100,000 Capital stock-Son (-SE) $60
*($90,000/90%) Retained earnings-Son (-SE) 20
Goodwill (+A) 20
BV of net assets 80,000
Investment in Son (-A) $90
Excess cost over BV $20,000 Noncontrolling interest (+SE) 10
Allocated to Goodwill $20,000
 Non Controlling Interest
Separate Balance Sheets Elimination
Consolidated Balance Sheet
(in thousands)
Pop Son Dr. Cr. Pop & Son

Cash $30 $20 $50

Other curr. assets 90 30 120
Plant assets, net 120 80 200
Investment in Son 90 0 90 0
Goodwill 0 0 20 20
Total $320 $130 $390
Accounts payable $40 $30 $70
Other curr. liabilities 50 20 70
Capital stock 200 60 60 200
Retained earnings 40 20 20 40
Total $330 $130
Noncontrolling interest 0 0 10 10
Total $390
Consolidated Balance Sheets
After Acquisition 3
 4
Assigning Excess to
Identifiable Net Assets and
Goodwill
Consolidated Income
Statement 5
 Consolidated Income Statement
Pam memperoleh 90% kepemilikan Sun pada tanggal 31 Desember 2021 dengan
nilai $10,200. Pada saat itu ekuitas Sun terdiri dari $4,000 saham biasa, $1,000
agio saham, dan $900 laba ditahan. Pada tanggal tersebut persediaan, tanah, dan
bangunan Son tercatat understated masing-masing sebesar $100, $200, dan
$1,000, dan peralatan dan utang weselnya tercatat overstated sebesar $300 dan
$100.
Allocated to:
Cost of acquisition $ 10,200 Inventory $100 1st year
Implied Value $11,333 Land 200 -
*($10,200/90%) Buildings 1,000 40 years
BV of net assets 5,900 Equipment (300) 5 years
Excess cost over BV $5,433 Note payable 100 1st year
Goodwill 4,333 -
Total $5,433
 Consolidated Income Statement

blankz Unamortized excess Current amortization Unamortized excess

1/1/21 12/31/21
Inventory 100 (100) 0
Land 200 0 200
Building 1,000 (25) 975
Equipment (300) 60 (240)
Note payable 100 (100) 0
Goodwill 4,333 0 4,333
Total 5,433 (165) 5,268
 Consolidated Income Statement
blank Pam Son Consolidated I/S
Sales $9,523.50 $2,200.00 $11,723.50
Income from Sun 571.50 blank $0.00
Cost of sales (4,000.00) (700.00) (4,800.00)
Depreciation exp – bldg. (200.00) (80.00) (305.00)
Depreciation exp – equip (700.00) (360.00) (1,000.00)
Other expense (1,800.00) (120.00) (1,920.00)
Interest expense (300.00) (140.00) (540.00)
Net income $3,095.00 $800.00 blank
Total consolidated income blank blank $3,158.50
Noncontrolling interest share blank blank 63.50
Controlling interest share blank blank $3,095.00

Biaya penjualan, depresiasi bangunan, dan beban bunga meningkat sebesar $100, $25, dan $100, dan
depresiasi peralatan $60 lebih rendah dari penjumlahan Pam dan Sun.
 Consolidated Income Statement
 Akun Income from Subsidiary dieliminasi.
 Amortisasi periode berjalan termasuk dalam akun beban yang sesuai.
 Nilai noncontrolling interest share of net income proporsional dengan nilai Income from
Subsidiary pada penggunaan metode ekuitas.

Sehingga:
 NCI share of net income = 10%/90% x $571,5 (Income from Subsidiary) = $63.50
Push-Down Accounting
6
Preparing a Consolidated
Balance Sheet Worksheet 7
Exercises 8
 Pop Son
Pop Corporation mengakuisisi 70% Cash 240.000 80.000
kepemilikan Son Corporation pada 1 Account receivable-customers 1.760.000 800.000
Januari 2021 seharga $2,800,000. Account receivable from Pop - 40.000
Pada saat itu, saldo capital stock Son Dividends receivable 28.000 -
$2,000,000 dan saldo retained Inventories 2.000.000 1.280.000
earnings Son $1,200,000. Pada saat Land 400.000 600.000
itu, BV Son sama dengan FV,
Plant assets-net 2.800.000 1.400.000
kecuali untuk inventory undervalued
Investment in Son 2.884.000 -
$80,000 (terjual di tahun 2021) dan
plant assets undervalued $320,000 10.112.000 4.200.000
(sisa masa manfaat 8 tahun). Net Account payable-suppliers 1.200.000 320.000
income Son pada tahun 2021 adalah Account payable to Son 40.000 -
$280,000 dan dividen yang Dividends payable 160.000 40.000
dibagikan $40,000. Long term debt 2.400.000 400.000
Capital stock 4.000.000 2.000.000
Retained earnings 2.312.000 1.440.000
10.112.000 4.200.000
 Cost of acquisition 2.800.000
Implied value 4.000.000
Book value net assets 3.200.000
Excess cost over book value 800.000

Allocated to: Amort

Inventories 80.000 1st year
Plant assets 320.000 8 years
Goodwill 400.000 -
Excess cost over book value 800.000
Investment in Son, Jan 1, 2021 2.800.000
(+) Share of Son's net income 196000
(-) Dividends -28000
(-) Amortization of inventory - 56.000
(-) Amortization of plant assets - 28.000
Investment in Son, Dec 31, 2021 2.884.000

Noncontrolling interest, beg 1.200.000

(+) Share of Son's net income 84000
(-) Dividends -12000
(-) Amortization of inventory - 24.000
(-) Amortization of plant assets - 12.000
Noncontrolling interest, end 1.236.000
 Jurnal Dr. Cr.
Account payable to Son 40.000
Account receivable from Pop 40.000
Dividends payable 28.000
Dividends receivable 28.000
Capital stock 2.000.000
Retained earnings 1.440.000
Inventories (70% x$80,000 undervalued) 56.000
Plant assets (70% x $360,000 undervalued) 224.000
Goodwill 400.000
Investment in Son 2.884.000
Noncontrolling interest 1.236.000
 Elimination
Pop Son Consolidated B/S
Dr. Cr.
Cash 240.000 80.000 320.000
Account receivable-customers 1.760.000 800.000 2.560.000
Account receivable from Pop - 40.000 40.000 -
Dividends receivable 28.000 - 28.000 -
Inventories 2.000.000 1.280.000 56.000 3.336.000
Land 400.000 600.000 224.000 1.224.000
Plant assets-net 2.800.000 1.400.000 4.200.000
Investment in Son 2.884.000 - 2.884.000 -
Goodwill 400.000 400.000
10.112.000 4.200.000 12.040.000
Account payable-suppliers 1.200.000 320.000 1.520.000
Account payable to Son 40.000 - 40.000 -
Dividends payable 160.000 40.000 28.000 172.000
Long term debt 2.400.000 400.000 2.800.000
Capital stock 4.000.000 2.000.000 2.000.000 4.000.000
Retained earnings 2.312.000 1.440.000 1.440.000 2.312.000
Noncontrolling interest 1.236.000 1.236.000
10.112.000 4.200.000 12.040.000