Consolidation - Subsequent to Date of Acquisition

Question 1

Consolidation - Subsequent to Date of Acquisition

Please please please, and remember this two important eliminating entries:

1. ?

2.?

Answer 1

1. Eliminate Dividend Income account (parent) against Dividend by Declared (subsidiary)

Dr. Dividend Income - Parent
Cr. Dividends Declared - Subsidiary

2. Eliminate the parent’s equity in the subsidiary’s stockholders’ equity at the DATE OF ACQUISITION

Question 2

Consolidation - Subsequent to Date of Acquisition

Possible Questions:

1. Consolidated Net Income attributable to the group (P&S), Parent and NCI (NCI, CNI-P, CNI-NCI)

Pakilatag ang pro forma computation.

Answer 2

See hard copy note

Question 3

Consolidation - Subsequent to Date of Acquisition

Possible Questions:

2. Consolidated Retained Earnings

Pakilatag ang pro forma computation.

Answer 3

See hard copy note

Question 4

Consolidation - Subsequent to Date of Acquisition

Possible Questions:

3. NCI in the Net Assets of Subsidiary (NICNAS)

Pakilatag ang pro forma computation.

Answer 4

See hard copy note

Question 5

Consolidation - Subsequent to Date of Acquisition

The undervalued in Inventory at the date of acquisition is presumed as sold at the end of the period (subsequent)