Summary Chapter 5 and 7 group statements

Group Statements



Retained earning NCI
Opening balance 100%P + gain + since @ + since


Total comprehensive
income
Profit for the year 100%P –div by S+ profit Attributable to NCI
attributable to P
OCI - -

Dividends declared (100%P ONLY) Dividend of s
attributable to NCI

Closing balance




Value adjustments
Trigger= except for…… undervalued
Scenario 1
-undervalued by 20 000
- s recognizes revaluation surplus immediately after acquisition
-Consol journals
Dr Share Capital
Dr RE
Dr Revaluation surplus
Cr Investment


By Evah Vionna Mbowane

, Cr NCI (if partially owned)


Scenario 2
-undervalued amount not given
-P acquired 80% for 150 000
-NCI measured at prop share
Total At (80%) NCI (20%)
Share capital 122 500 98 000 24 500
RE 7 500 6 000 1 500
Revaluation S 57 500 46 000 11 500
Total equity 187 500 150 000 37 500

Goodwill/ Gain - - -
from BP
Consideration 187 500 150 000 37 500
+ NCI
NB: Calculate RS first before attributing equity to NCI
- Consol journal
Dr Share Capital
Dr RE
Dr Revaluation surplus
Cr Investment
Cr NCI (if partially owned)


Scenario 3
-undervalued by 20 000
-sold during year
-consolidation is done at year end
- s recognizes immediately after acquisition
Dr Share Capital
Dr RE-o/b

By Evah Vionna Mbowane