Prepare journals (= indicate Debit/Credit bookings) AND fill in consolidation template based on IFRS standards Indicate Debit/ Credit posting either this sheet OR template sheet next to elimination => (Dr: 'account name' / Cr: 'account name')
Please prepare consolidated financial statements as of 31.12.20x4.
1.1.20x1 PARENT Ltd acuired 75% of Sub 1, price 650. At the acquisition date the equity of the subsidiary was as follows: Share capital 300, retained earnings 250. When acquiring and estimating the purchase price, parent estimated Sub1 having good future business expectations. During the valuation process, the parent company noticed that the land in Subsidiary's balance sheet was undervalued for 100.
1.1.20x2 Parent acquired 100% of Sub 2 with price 400. Sub 2's equity at acquisition date was as follows: Share capital 250, retained earnings 100. The purchse price was based on Sub2's business expectations.
A. Group internal transactions:
1. Parent sold goods to Sub2 for 800 during the period.
2. Sub1 paid dividend of 112 to parent during the period.
3. Parent had given a loan to Sub1: 100 and Sub 2: 150. Interest paid for these loans was Sub1: 10 and Sub 2: 15.
4. Sub2 has open payables (liabilities) to parent for 300.
B. Internal ownership of subsidiaries is eliminated according to the Acquisition method.
C. Calculate the NCI - Non-controlling-interest and present it in separate lines.
D. Associated company, use the equity method.
Parent acquired 25% from Associated company X Ltd 1.1.20x4 for 150. The profit of the company during financial year 20x4 was 400. Company didn't pay any dividends yet. Acquisition calculation: purchase price 150 - share of net assets at fair value 150= 0 (no goodwill)
Attachment:- Assignment.rar