Big Ltd purchased 90% of the shares in Medium Ltd on 1 July 2015 for $6000,000. Medium Ltd owner’s equity at the date of acquisition comprised the following: Share capital $450,000 Reserves $100,000 Retained profits $ 75,000 On 1 August 2015, Medium Ltd acquired 70% of the shares of Small Ltd for $380,000. Small Ltd owner’s equity at that date comprised the following. Share capital $200,000 Retained profits $180,000 An additional $3,000 goodwill impairment has been recognised on the second investment of Medium Ltd in Small Ltd during the period of 2015-2016. (Note, assuming partial goodwill method is used, then the impairment will only impact the immediate parent (which is Medium Ltd.’s share of profit). BIG………….90%........... MEDIUM……………70%..................SMALL Required:
a) Prepare the elimination Journal entries required for the consolidation as at 30 June 2016.
b) Calculate the Non-controlling interests in the group.