CH14 consolidated SPL Flashcards
In the CSPL, what do you do to dividends received from the sub?
Cross them out - eliminate
NCI at bottom of CSPL is % of what?
What is the parent’s share?
sub’s % of IT’S profit for the period (ie not the total profit (of parent + sub)
The balancing fig
How do you deal with sales between parent and sub?
eliminate sale price and COS between p&s. Only the COS actually incurred by the seller is included and the revenue actually received by whoever sold it on to a third part yare recognised.
If parent and sub sell to each other, but the goods are not sold on to a third party, what happens?
PURP!!!
ADD the value to COS of SELLER.
This reduces profit, which as we learned in CSFP will reduce REs. Inventory is also reduced in the CSFP
Steps for a PURP in CSPL
- Calculate amount of unsold inv
- Calc intra group profit and multiply by % of unsold inv
- Add to COS of SELLER
NCA asset transfers - unwind what in accounts of P or S?
Unwind profit on disposal
Unwind EXTRA depreciation
SELLER!!!
Do you need to eliminate a profit/loss on disposal if it did not happen within the financial year? What about the extra depreciation?
Made in the P or S’s CSPL?
No
Yes - every year you strip out one year’s worth of excess depn
SELLER!!!
for what period do you adjust impairment in CSPL?
what %?
whose accounts do you adjust if proportionate method?
Whose accounts do you adjust for FV method?
the financial year
100%
add to expense of parent: proportionate
add to expense of sub: FV
FV depn = extra depn - added to whose exps?
Sub’s
what is the cspl working (short)
where do the bottom two lines go in the SOCIE?
attributable to owners of parent: add to RE in SOCIE
attributable to NCI :add to NCI in SOCIE
SOCIE layout
What happens to any divs paid by the parent co in the SOCIE?
Deducted in full i RE column of SOCIE
What happens to any divs paid by the sub to the NCI co in the SOCIE? Eg, if sub has ‘dividends paid of 30,000’ in its SPL and it pays the parent 24,000 of that, then the other 6,000 is paid to the NCI.
The amount of divs paid to the NCI, the 6,000, is deducted in the NCI column of the SOCIE
disposal calc for cspl
remember - disp calc for cspl?
