On January 1, 20x1, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of ₱15 per share. On this date, XYZ’s equity comprised of ₱50,000 share capital and ₱24,000 retained earnings. NCI was measured at its proportionate share in XYZ’s net identifiable assets. XYZ’s assets and liabilities on January 1, 20x1 approximate their fair values except for the following: XYZ, Inc. Carrying amounts Fair values Fair value adjustments (FVA) Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 50,000 60,000 10,000 Accumulated depreciation (10,000) (12,000) (2,000) Totals 63,000 79,000 16,000 XYZ, Inc. declared and paid dividends of ₱6,000 during 20x1. There was no impairment in goodwill. The year-end individual statements of profit or loss are shown below: Statements of profit or loss For the year ended December 31, 20x1 ABC Co. XYZ, Inc. Sales 300,000 120,000 Cost of goods sold (165,000) (72,000) Gross profit 135,000 48,000 Depreciation expense (40,000) (10,000) Distribution costs (32,000) (18,000) Interest expense (3,000) 0 Dividend income 4,800 0 Profit for the year 64,800 20,000 How much is the consolidated net income attributable to parent shareholders? How much profit is attributable to non-controlling interest?
On January 1, 20x1, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of ₱15 per share. On this date, XYZ’s equity comprised of ₱50,000 share capital and ₱24,000
XYZ’s assets and liabilities on January 1, 20x1 approximate their fair values except for the following:
XYZ, Inc. Carrying amounts Fair values Fair value adjustments (FVA)
Inventory 23,000 31,000 8,000
Equipment (4 yrs. remaining life) 50,000 60,000 10,000
Totals 63,000 79,000 16,000
XYZ, Inc. declared and paid dividends of ₱6,000 during 20x1. There was no impairment in
Statements of profit or loss
For the year ended December 31, 20x1
ABC Co. XYZ, Inc.
Sales 300,000 120,000
Cost of goods sold (165,000) (72,000)
Gross profit 135,000 48,000
Depreciation expense (40,000) (10,000)
Distribution costs (32,000) (18,000)
Interest expense (3,000) 0
Dividend income 4,800 0
Profit for the year 64,800 20,000
How much is the consolidated net income attributable to parent shareholders?
How much profit is attributable to non-controlling interest?
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