GROUP ACCOUNTS
Advance Financial AccountingGROUP ACCOUNTS
Comprehensive Workings in Group Accounts Consolidated Balance Sheet
W1 Number of ordinary shares of S Co H% acquired by P Co x 100 = % Total number of ordinary shares in S Co
100 – H% = MI% MI%
W
2 Analysis of equity of S Co for pre and post acquisition
Post-Pre-acquisition acquisition Ordinary share capital All Nil
on the date of after the date Reserves acquisition of acquisition
Fair value adjustment All Nil
Total
H% of total Parent’s share Parent’s share
Minority’s MI% of total Minority’s share share
W
3 Calculation of Goodwill Rs.
Costo fo investment in S Co’s ordinary shares ***** less Dividend received out of the *****
| preacquisition profits | ***** | ||||
| Pre-acquistion fair value of net assets (owners’ equity) of S Co x H% Goodwill less Impairment loss Goodwill to be presented in consolidated balance sheet | ***** ***** (****) ***** | ||||
| W4 | Calculation of Group Reserves | ||||
| Reserves of Parent Co add Post acquisition equity of S Co to the extent of H% less Un-realized profit (if intra group sale from P to S) less Un-realized profit (if intra group sale from S to P) to the extent of H% less depreciation effect on fair vale adjustment to the extent of H% less impairment loss of goodwill | All ***** (All) (****) (****) (****) ***** | ||||
| W5 | Calculation of Minority Interest | ||||
| Owners’ equity of S Co add Fair value Adjustment less URP (incase of intra group sale from S to P) less Depreciation effect on fair value adjustment Total value | All All (All) (All) Total | ||||
| Minority Interest = | Total x MI% | ||||
| Calculations specific to the scenario | |||||
| Advance Financial Accounting (FIN-611) VU Scenario Action 1 Intra group loans To be cancelled 2 as goods in transit or cash Intra group current accounts To be cancelled and balance if any to be shown in transit, as the case may be. 3 to be shown in theIntra group dividend To be cancelled to the extent of H%, the balance consolidated balance sheet as payable to Minority 4 Negative goodwill reserve To be added in the group 5 and calculation fo pre acquisition year in which the S Co During the year acquisition of S Co acquired + profit for the reserves was acuired to the extend Reserves as on the opening date of the year in which the S Co was of the number of months remained in the group’s acquisition Consolidated Income Statement W1 Calculation of opening balance of group’s retained profits Opening balance of Retained profits of P Co All add Post acquisition opening balance of retained profits of S Co x H% ***** less Goodwill imapirment loss (****) ***** W2 Calculation of Minority Interest Profit after tax of S Co. ***** less Un-realized profit (if intra group sales from S to P) (****) Net/Total *****Â |
Net/Total amount x MI% = Minority Interest
Calculations specific to the scenario
Intra group1 dividend
2 Intra group trading
Unrealized profits
To be cancelled. TIP: All amount of dividend paid by the S Co will be eliminated only the amount of dividend paid by the P Co will appear in the Consolidated Income Statement
Deduct the same amount from the sales and also from the cost of goods sold in the consolidated income statement
Add in the cosolidated cost of goods sold and subtract from the profit after tax of S Co before applying MI% to calculate Minority interest (only when the intra group trading is from S to P) If it is intra group trading from P to S then do nothin for Minority Interest calculation
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