PT A acquired PT B in 2 stages. In 2017, PT A acquired a 40% common shares of PT B, the carrying value of which as of December 31, 2021 was Rp20 million and, at the end of 2021, PT A acquired an additional 50% common shares of PT B for Rp250 million in cash. On that date, the fair value of PT A’s previously held investment is determined to be Rp200 million and the fair value of noncontrolling interest is determined to be Rp50 million. The net aggregate value of the identifiable assets and liabilities is determined to be Rp440 million. Prepare the journal entry for PT A with regards to its investment in PT B as of end of 2021.
PT A acquired PT B in 2 stages. In 2017, PT A acquired a 40% common shares of PT B, the carrying value of which as of December 31, 2021 was Rp20 million and, at the end of 2021, PT A acquired an additional 50% common shares of PT B for Rp250 million in cash. On that date, the fair value of PT A’s previously held investment is determined to be Rp200 million and the fair value of noncontrolling interest is determined to be Rp50 million. The net aggregate value of the identifiable assets and liabilities is determined to be Rp440 million. Prepare the journal entry for PT A with regards to its investment in PT B as of end of 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PT A acquired PT B in 2 stages. In 2017, PT A acquired a 40% common shares of PT B, the carrying value of which as of December 31, 2021 was Rp20 million and, at the end of 2021, PT A acquired an additional 50% common shares of PT B for Rp250 million in cash. On that date, the fair value of PT A’s previously held investment is determined to be Rp200 million and the fair value of noncontrolling interest is determined to be Rp50 million. The net aggregate value of the identifiable assets and liabilities is determined to be Rp440 million. Prepare the
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