14-consolidated-fs-pt1.pdf
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IR2 – AFAR Consolidated FS (Part 1) Use the following information for the next five questions: On January 1, 20x1, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On acquisition date, Bass Co. elected to measure non-controlling interest at fair value. Bass Co.’s management believes that the fair value of the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair value of the remaining interest. Guitar Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 20x1 statements of financial position of Bass Co. and Guitar Co. are summarized below: Bass Co.
Guitar Co.
ASSETS Investment in subsidiary (at cost) Other assets TOTAL ASSETS
300,000 1,372,000 1,672,000
496,000 496,000
LIABILITIES AND EQUITY Trade and other payables Share capital Retained earnings Total equity TOTAL LIABILITIES AND EQUITY
292,000 940,000 440,000 1,380,000 1,672,000
120,000 200,000 176,000 376,000 496,000
No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill. 1. What amount of goodwill is presented in the consolidated statement of financial position on December 31, 20x1? a. 40,000 b. 35,000 c. 20,000 d. 15,000 2. How much is the consolidated total assets as of December 31, 20x1? a. 1,867,000 b. 1,907,000 c. 1,958,000 d. 1,974,000 3. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 20x1? a. 106,500 c. 136,500 b. 116,500 d. 146,500 4. How much is the consolidated retained earnings on December 31, 20x1? a. 489,500 c. 534,500 b. 498,500 d. 543,500 5. How much is the consolidated total equity on December 31, 20x1? a. 1,546,000 c. 1,642,000
b. 1,564,000
d. 1,624,000
Use the following information for the next three questions: On January 1, 20x1, Laughter Co. issued equity instruments in exchange for 75% interest in Tears Co. Tears Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 20x1 statements of profit or loss of Laughter Co. and Tears Co. are summarized below: Statements of profit or loss For the year ended December 31, 20x1 Revenues Operating expenses Profit for the year
Laughter Co. 1,200,000 (960,000) 240,000
6. How much is the consolidated profit in 20x1? a. 301,000 c. 320,000 b. 310,000 d. 336,000 7. How much is the consolidated profit attributable to owners of the parent in 20x1? a. 292,500 c. 320,000 b. 310,000 d. 232,500 8. How much is the consolidated profit attributable to non-controlling interest in 20x1? a. 6,500 c. 57,500 b. 17,500 d. 77,500
Tears Co. 480,000 (400,000) 80,000
Guitar Co.
ASSETS Investment in subsidiary (at cost) Other assets TOTAL ASSETS
300,000 1,372,000 1,672,000
496,000 496,000
LIABILITIES AND EQUITY Trade and other payables Share capital Retained earnings Total equity TOTAL LIABILITIES AND EQUITY
292,000 940,000 440,000 1,380,000 1,672,000
120,000 200,000 176,000 376,000 496,000
No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill. 1. What amount of goodwill is presented in the consolidated statement of financial position on December 31, 20x1? a. 40,000 b. 35,000 c. 20,000 d. 15,000 2. How much is the consolidated total assets as of December 31, 20x1? a. 1,867,000 b. 1,907,000 c. 1,958,000 d. 1,974,000 3. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 20x1? a. 106,500 c. 136,500 b. 116,500 d. 146,500 4. How much is the consolidated retained earnings on December 31, 20x1? a. 489,500 c. 534,500 b. 498,500 d. 543,500 5. How much is the consolidated total equity on December 31, 20x1? a. 1,546,000 c. 1,642,000
b. 1,564,000
d. 1,624,000
Use the following information for the next three questions: On January 1, 20x1, Laughter Co. issued equity instruments in exchange for 75% interest in Tears Co. Tears Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 20x1 statements of profit or loss of Laughter Co. and Tears Co. are summarized below: Statements of profit or loss For the year ended December 31, 20x1 Revenues Operating expenses Profit for the year
Laughter Co. 1,200,000 (960,000) 240,000
6. How much is the consolidated profit in 20x1? a. 301,000 c. 320,000 b. 310,000 d. 336,000 7. How much is the consolidated profit attributable to owners of the parent in 20x1? a. 292,500 c. 320,000 b. 310,000 d. 232,500 8. How much is the consolidated profit attributable to non-controlling interest in 20x1? a. 6,500 c. 57,500 b. 17,500 d. 77,500
Tears Co. 480,000 (400,000) 80,000
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