1. The Profit Attributable to Equity Holders of Parent/ Controlling Interest (Parent’s Interests) in ConsolidatedNet income for 20x42. The Non-controlling interest in net income for 20x43. The Consolidated/Group Net Income for 20x4 Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 20x1, when Salt Company's retainedearnings amounted to 130,000. The difference between the implied and book value and fair values of the non-cash assets onthe date of acquisition was allocated as follows:Land.P 50, 000Equipment (10-year life) .20, 000Goodwill...40, 000Salt Company reported retained eamings of P260, 000 on January 1, 20x4, and 320,000 on December 31, 20x4.Salt Company reported net income of P90,000 and declared dividends of P30,000 in 20x4. Also, Pepper reported operatingincome in 20x4 in the amount of P700,000 with dividends paid of P25,000 and retained earnings on December 31, 20x4, ofP3,500,000.The sales, cost of sales and intercompany sales made during 20x4 are as follows:Pepper Co.P 2,500,0001,250,000Salt Co.Sales.1,200,000875,000Cost of Sales.Intercompany sales:Pepper to Salt.Salt to Pepper.320, 000290, 000There were no intercompany sales prior to 20x3 and unrealized profits on January 1 and on December 31, 20x4, resultingfrom intercompany sales are summarized below:Unrealized IntercompanyProfit onResulting from:1/1/x412/31/x4P 10,000Sales by Salt Company to Pepper CompanySales by Pepper Company to Salt CompanyP 5,00015,00020,000

Consolidated net income can be defined as the total income under the control of the parent company.…

The Profit Attributable to Equity Holders of Parent/ Controlling Interest (Parent’s Interests) in Consolidated Net income for 20x4 2. The Non-controlling interest in net income for 20x4 3. The Consolidated/Group Net Income for 20x4

The Profit Attributable to Equity Holders of Parent/ Controlling Interest (Parent’s Interests) in Consolidated Net income for 20x4 2. The Non-controlling interest in net income for 20x4 3. The Consolidated/Group Net Income for 20x4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are the consolidated financial statements of Maya Group for the financial year ended 31 December 2021. Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 31 December 2021 Revenue Operating expenses Profit from operations Gain on disposal of subsidiary Finance costs Share of profit of associate Profit before tax Tax expense Profit after tax Other comprehensive income (OCI) Investment thorough OCI Other comprehensive income from associate Total comprehensive income Profit attributable to: Non-controlling interest Equity holders of the parent OCI attributable to: Non-controlling interest Equity holders of the parent Non-current assets Property, plant and equipment Goodwill Investment in associate Current assets Inventories Trade receivables Cash and cash equivalents Total assets Equity Contributed ordinary share capital Revaluation reserves Non-controlling interest Retained earnings Non-current liabilities Long-term loan Deferred tax…
20.IFRIC 17 Distribution of noncash assets to owner provides that at the end of each reporting period and at the date of settlement, the entity shall review and adjust the carrying amount of the dividend payable with any change recognized in Group of answer choices a. share premium b. share capital c. profit or loss d. retained earnings
Describe the following item a) Minority interest b) Equity in earnings of nonconsolidated subsidiaries c) Minority share of earnings
Compute for: a. Net income attributable to parent b. Non-controlling interest in net income
6
What is true about the choice by the parent as to whether to use the equity, partial equity or initial value methods for its investment in its consolidated subsidiary. Partial equity method has the parent record excess amortization All methods result in the same Investment balance on the parent's books Consolidated totals for all three methods will be identical Equity method results in the highest consolidated net income
Explain what effect does the dividend have on the retained earnings and non-controlling interest balances in the parent company’s consolidated balance sheet if a 70 percent owned subsidiary company declares and pays a cash dividend.
Using the proportionate basis or partial goodwill method, compute the equity holders of parent (or controlling interest) retained earnings on January 1:A. P 48,000 C. P 84,900B. P52,100 D. P 89,000
03) Which of the following journal entry formats is appropriate under the equity method of accounting to record the parent company's share of a subsidiary's dividend declaration? Select one: 1 O b. ll Oc. III Od. IV 1. Intercompany Dividends Receivables Investment in Subsidiary Common Stock Cash Intercompany Dividend Revenue Intercompany Dividends Receivable intercompany Dividends Revenue Investment on Subsidiary Common Stock Intercompany Dividend Revenue
Do not use negative signs with your answers below. Reconciliation of Cost to Equity Method Parent's pre-consolidation net income 401000 v Dividend Income 81000 v P% x Net income of subsidiary P% x AAP amortization 0 x Net income attributable to controlling interest $ 0 x b. Prepare the consolidated income statement for the current year. Do not use negative signs with your answers below. Consolidated Income Statement Sales $ 12200000 v Cost of goods sold 8120000 v Gross profit 4080000 v Operating expenses 0 x Net income Net income attributable to noncontrolling interests 0 x Net income 0 x
TRUE OR FALSE: Indicate whether the statements are true or false. 1. Assuming the parent acquired 100 percent of the subsidiary’s stock and there are no purchase differentials, the investment income recorded by the parent in the current period will equal the subsidiary’s current net income recognized subsequent to the acquisition date. 2.
a. Determine the goodwill or gain on bargain purchase from the above acquisition if the NCI is to be valued on a proportionate b. Determine the balance of the NCI in FC’s consolidated financial statements.