Deal No Deal

or
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CONSOLIDATION OF
FINANCIAL
STATEMENTS
PART 1
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7 8 9 10 11

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Deal No Deal Goal-Pick the Case with the “Free

or
Ride” inside!
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● Select Number of Case you want to open.

● Answer 12the question assigned to your
13 14 Brief Case.
15
● After time allotted to answer your question, Banker will offer
you grade if you want to deal with it.
● NO DEAL- if you want to answer your question.
● 1007if correct answer.
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● 90 if almost correct.
● 85 if not correct answer.
Back ●1 DEAL- you 2 want to accept
3 the offer4 grade of Banker.
5 6
● Most importantly have fun and work hard!
Deal No Deal 100% GRADE Case

or
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30 Second Timer
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Dice
Deal No Deal

or
Activity 1
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What are the 2 standards

to
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Follow when accounting
For Consolidated
Financial Statement?
Answer:
PFRS 10 Consolidated
7 8 9 Financial10
Statements 11
PFRS 12 Disclosure of
Interests in Other
Entities

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or
Activity 2
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In Consolidation, this is
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entity that controls
one or more entities.

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Answer:
Parent

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or
Activity 3
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In Consolidation, what
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you call an entity
is controlled by another
entity?

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Answer:
Subsidiary

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Deal No Deal

or
Activity 4
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What do you call the financial

statements of a group in which
the assets, liabilities, equity,
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income, expenses and cash
flows of the parent and its
subsidiaries are presented as
those of a single economic
entity?
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ANSWER:
Consolidated financial
statements

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Deal No Deal

or
Activity 5
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following are exceptions for a parent entity to
require them to present consolidated financial
statements, except?
a. The parent is a subsidiary of another entity and all
its other owners do not object to the parent not
12 13 14 consolidated15financial statements
presenting
b. The parent company and subsidiary are publicly
listed companies.
c. The parent’s debt or equity instruments are not
traded in a public market (or being processed for
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d. The parent’s ultimate or any intermediate parent
produces consolidated financial statements that are
available for public use and comply with PFRSs.

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ANSWER: B
Deal No Deal

or
Activity 6
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Which is not an element of Control
in Consolidation?
a. Power over the investee
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b. Exposure, or rights, to
variable returns from its
involvement with the investee
c. Percentage ownership
d. The ability to use its power
over the investee to affect the
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amount of the investor’s 11
returns.
ANSWER: C

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or
Activity 7
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ADDITIONAL INFORMATION: Consolidated financial
statements shall be
 The financial statements of the parent prepared using ______
and its subsidiaries used12in preparing 13 14
accounting 15
policies.
consolidated financial statements shall a. Different
have the same reporting dates. (The b. Uniform
maximum difference in reporting dates is c. Unrelated
3 months.) d. Vague
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 Consolidation begins from the date
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the investor obtains control of the Answer: B (see
investee and ceases when the investor addtl info)
loses control of the investee.
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or
Activity 8
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12 13 14 15

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or
Activity 9
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A British parent entity uses the revaluation

model to measure its property, but a
Philippine subsidiary uses the cost model.
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The Philippine subsidiary’s directors find the
revaluation model too costly to implement.
In the consolidated financial statements, is
the group allowed to measure the Philippine
subsidiary’s property under the cost model?
ANSWER:
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No, the Philippine subsidiary’s
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property shall be adjusted to conform
to the group’s accounting policy of
revaluation model.
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or
Activity 10
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12 13 14 15

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Deal No Deal

or
Activity 11
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Non-controlling interests shall be presented in
the consolidated statement of financial position In what part of Consolidated
Statement of Financial
within equity, separately from the equity of Position will the Non
the owners of the parent. Controlling Interest shall be
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presented? 15
Non-controlling interest in the net assets A. Asset
consists of: B. Liability
C. Equity
1. 1. The amount determined at the
D. Notes to FS
acquisition date using PFRS 3; and
7
2. 2. The NCI’s share of changes in
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eqauity since the acquisition date. ANSWER:
B (see addtl info)

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or
Activity 12
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The profit or loss and each
component of other
comprehensive income in the
consolidated statement of profit
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or loss and other comprehensive
income shall be attributed what?
a. Owners and Subsidiary
b. Owners and Non Controlling

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Answer:
B

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Deal No Deal

or
Activity 13
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Deal No Deal

or
Activity 14
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Consolidated financial
statements are prepared by
combining the financial
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statements of the parent and its
subsidiaries line by line by
adding together ______items
of assets, liabilities, equity,
income and expenses.
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ANSWER:
SIMILAR

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Deal No Deal

or
Activity 15
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12 13 14 15

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Deal No Deal

or
Activity 16
16
Consolidation at date of acquisition 17 18
1. Eliminate the “Investment in subsidiary”
Which is not step to eliminate the “Investment in
account. This requires:
subsidiary” account. :
A. Measuring the identifiable assets
a.Derecognize it immediately.
acquired and liabilities assumed in the
b. Measuring the identifiable assets
date fair values.
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business combination at their acquisition-
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acquired and liabilities assumed in the
business combination at their acquisition-
B. Recognizing the goodwill from the date fair values.
business combination. c. Recognizing the goodwill from the
C. Eliminating the subsidiary’s pre- business combination.
combination equity accounts and replacing
d. Eliminating the subsidiary’s pre-
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them with the non-controlling interest. 9 10 11
combination equity accounts and replacing
2. Add, line by line, similar items of assets
them with the non-controlling interest.
and liabilities of the combining constituents.
Answer: A (see addtl info)

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or
Activity 17
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You can account Investments in
subsidiaries in the parent’s
separate financial statements
12 13 14except? 15
using this
a. at cost;
b. in accordance with
PFRS 9 Financial
Instruments; or
7 8 9 c. 10the equity 11
using
method.
d. Net Realizable value

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ANSWER: D
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or
Activity 18
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Income and expenses of
the subsidiary are based
on the amounts of the
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assets 15
recognized in the
consolidated financial
statements at what date?
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Answer:
Acquisition date

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