Post on 16-Dec-2015
transcript
Dr Marcin Jędrzejczyk
Consolidated accounts – an overview
GROUP FINANCIAL STATEMENTS
JOINTLY CONTROLLED ENTITY
ASSOCIATE SUBSIDIARY
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Consolidated accounts – an overview
ASSOCIATE JOINTLY CONTROLLED ENTITY
SUBSIDIARY
Features Significant influence over the financial and operating policy decisions
Joint control over the financial and operating policy decisions
Control – power to govern the financial and operating policies
Accounting treatment
Equity method (IAS 28), share of net assets and profits
Proportionate consolidation (benchmark) or equity method (IAS 31)
IAS 22, IAS 27
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Acquisition Method (1)
Parent Company has purchased 100% of Shares for 100 000 zl in Subsidiary Company. Net Assets Value equals 85000 zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method.
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Acquisition Method (2)
Parent Company has purchased 80% of Shares for 100 000 zl in Subsidiary Company. Net Assets Value equals 85000 zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method.
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Parent Company (P)
(in zł)Subsidiary (S)
(in zł)
ASSETSGoodwill
Property Plant and Equipment 1 300 000 60 000
Investment in S 100 000Long term receivables 14 000
Inventories 300 000 30 000Receivables 130 000 10 000
Cash 150 000 10 000Other Commodities 20 000 5 000
TOTAL ASSTES 2 000 000 129 000LIABILITIES + OE
Owners EquityShare Capital 1 100 000 60 000
Supplementary Capital 180 000 20 000Profit/loss 20 000 5 000
Reserves 100 000Long-term liablities 420 000 34 000
Liabilities 180 000 10 000TOTAL LIAB. + OE 2 000 000 129 000
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Proportionate Method
Parent Company has purchased 80% of Shares for 80 000 zl in JCE Company. Net Assets Value equals 85000 zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the proportionate consolidation.
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Parent Company (P)
(in zł)JCE (JCE)
(in $)
ASSETSGoodwill
Property Plant and Equipment 1 300 000 60 000
Investment in S 80 000Long term receivables 14 000
Inventories 300 000 30 000Receivables 150 000 10 000
Cash 150 000 10 000Other Commodities 20 000 5 000
TOTAL ASSTES 2 000 000 129 000LIABILITIES + OE
Owners EquityShare Capital 1 100 000 60 000
Supplementary Capital 180 000 20 000Profit/loss 20 000 5 000
Reserves 100 000Long-term liablities 420 000 34 000
Liabilities 180 000 10 000TOTAL LIAB. + OE 2 000 000 129 000
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Uniting of Interest Method Company P has purchased 80% of
Shares for 80 000 zl in Associate Company. Net Assets Value equals 60000 zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the Uniting of Interest Method.
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Parent Company (P)
(in zł)
ASSETSGoodwill
Property Plant and Equipment 1 300 000
Investment in S 80 000Long term receivables
Inventories 300 000Receivables 150 000
Cash 150 000Other Commodities 20 000
TOTAL ASSTES 2 000 000LIABILITIES + OE
Owners EquityShare Capital 1 100 000
Supplementary Capital 180 000Profit/loss 20 000
Reserves 100 000Long-term liablities 420 000
Liabilities 180 000TOTAL LIAB. + OE 2 000 000
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Acquisition Method (1)
Parent Company has purchased 100% of Shares for 1 000 000 zl in Subsidiary Company. Net Assets Value equals $85000 at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method. Exchange rate equals 3,5 zł/$.
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Acquisition Method (2)
Parent Company has purchased 80% of Shares for 1 000 000 zl in Subsidiary Company. Net Assets Value equals $85000 at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method. Exchange rate ewuals 3,5 zł/$.
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Parent Company (P)
(in zł)Subsidiary (S)
(in USD)
ASSETSGoodwill
Property Plant and Equipment 1 300 000 60 000
Investment in S 1 000 000Long term receivables 14 000
Inventories 300 000 30 000Receivables 130 000 10 000
Cash 150 000 10 000Other Commodities 20 000 5 000
TOTAL ASSTES 2 900 000 129 000LIABILITIES + OE
Owners EquityShare Capital 1 100 000 60 000
Supplementary Capital 180 000 20 000Profit/loss 20 000 5 000
Reserves 100 000Long-term liablities 420 000 34 000
Liabilities 1 080 000 10 000TOTAL LIAB. + OE 2 900 000 129 000
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