Académique Documents
Professionnel Documents
Culture Documents
Cost of sales
Gross profit
Distribion expenses
Administration expenses
Finance cost
Profit before Tax
Income Tax 30%
Profit for the year
Emlcerson Plc
TZS 000
10,050.00
(6,700.00)
3,350.00
(550.00)
(350.00)
(50.00)
2,400.00
(720.00)
1,680.00
FTC Ltd
TZS 1000
3,300.00
(2,200.00)
1,100.00
(275.00)
(125.00)
(10.00)
690.00
(207.00)
483.00
Revenue
Cost of sales
Gross profit
Distribion expenses
Administration expenses
Finance cost
Profit before Tax
Income Tax 30%
Profit for the year
Step 1
Emlcerson Plc
10,050.00
(6,700.00)
3,350.00
(550.00)
(350.00)
(50.00)
2,400.00
(720.00)
1,680.00
FTC Ltd
3,300.00
(2,200.00)
1,100.00
(275.00)
(125.00)
(10.00)
690.00
(207.00)
483.00
Emerson Plc
FTC ltd
100%
0%
100%
Step 2
31-Mar-15
Step 3
Step 4
Step 5
Compute goodwill
Fair value of consideration given to accquire net assets
Fair value of NCI at acquision date
FV of net assets of acquired entity
Goodwill
ict:
Acquision was done at the
beginning of accounting p
no apportionment of reve
and expenses is required
xx
xx
(xx)
xx
Step 6
Step 7
Step 8
Emerson Group
13,350.00
(8,900.00)
4,450.00
(825.00)
(475.00)
(60.00)
3,090.00
(927.00)
2,163.00
ict:
Acquision was done at the
beginning of accounting period,
no apportionment of revenue
and expenses is required
Revenue
Cost of sales
Gross profit
Distribion expenses
Administration expenses
Dividend reveIced from FTC
Profit before Tax
Income Tax 30%
Profit for the year
Prfit attributable to
Parent(Balancing figure)
Non controlling interest(Step 7)
Profit for the year
Step 1
Identfy Group structure
Parent
Subsidiary
% of acquisition
Non Controlling Interest
Emlcerson Plc
10,050.00
(6,700.00)
3,350.00
(550.00)
(350.00)
(50.00)
2,400.00
(720.00)
1,680.00
Emerson Plc
FTC ltd
80%
20%
100%
Step 2
Step 3
Step 4
Step 5
FTC Ltd
3,300.00
(2,200.00)
1,100.00
(275.00)
(125.00)
(10.00)
690.00
(207.00)
483.00
31-Dec-14
Compute goodwill
Fair value of consideration given to accquire net assets
Fair value of NCI at acquision date
ict:
Acquision was done at the
beginning of accounting
period, no apportionment
revenue and expenses is
required
Step 6
Step 7
Step 8
Emerson Group
12,525.00
(8,350.00)
4,175.00
(756.25)
(443.75)
(57.50)
2,917.50
(875.25)
2,042.25
1,945.65
96.60
2,042.25
ict:
Acquision was done at the
beginning of accounting
period, no apportionment of
revenue and expenses is
required
xx
xx
120.75
120.75
(xx)
xx
FTC
483.00
483.00
96.60
Revenue
Cost of sales
Gross profit
Distribion expenses
Administration expenses
Impairment of goodwill
Dividend reveIced-Ordinary shares
Dividend reveIced-preference shares
Profit before Tax
Income Tax 30%
Profit for the year
Prfit attributable to
Parent(Balancing figure)
Non controlling interest(Step 7)
Profit for the year
Step 1
Identfy Group structure
Parent
Subsidiary
% of acquisition
Non Controlling Interest
Emlcerson Plc
Emerson Adjustments
200,000.00 200,000-9,000x(1+1/3)
(60,000.00) 9000x0.5x1/3
140,000.00
(50,000.00)
(9,082.00)
3,750.00 3,750-3750
600.00 600-600
85,268.00
(14,004.00)
71,264.00
Emerson Plc
FTC ltd
75%
25%
100%
Step 2
Step 3
Step 4
31-Dec-14
(17,850.00)
ict:
Acquision was done at the
beginning of accounting perio
apportionment of revenue and
expenses is required
Step 5
Step 6
Step 7
Compute goodwill
Fair value of consideration given to accquire net assets
Fair value of NCI at acquision date
FV of net assets of acquired entity
Goodwill at acquision date
Imairment if goodwill (IAS 36)
Goodwill at reporting date
Adjust Profit figures
To be discussed
Compute group retained earnings and NCI to SFP & P/L
Profit as per P/L
Dividend received from subsidiary
PURS(Parent is a seller)
PURP(subsidiary is a seller)
Adjustment for depreciation
Impairment of goodwill
etc
Adjusted profit
FTC profit atributable to NCI (24,000X20%)
Step 8
9,000*0.5*1/3
188,000.00
(61,500.00)
126,500.00
(50,000.00)
(9,082.00)
FTC Ltd
FTC Ltd Adjusted
120,000.00
(60,000.00) 120,000-9,000x(1+1/3)
60,000.00
(30,000.00)
(10,000.00)
120,000.00
(48,000.00)
72,000.00
(30,000.00)
(10,000.00)
(2,000.00)
67,418.00
(14,004.00)
53,414.00
ict:
Acquision was done at the
beginning of accounting period, no
apportionment of revenue and
expenses is required
20,000.00
(6,000.00)
14,000.00
10,000.00
30,000.00
(6,000.00)
24,000.00
10,000X20%
Emerson
71,264.00
(17,850.00)
53,414.00
15,000.00
(4,500.00)
10,500.00
Emerson Group
308,000.00
(109,500.00)
198,500.00
(80,000.00)
(19,082.00)
(2,000.00)
97,418.00
(20,004.00)
77,414.00
71,914.00
5,500.00
77,414.00
xx
xx
(xx)
xx
FTC
14,000.00
10,000.00
24,000.00
5,500.00
10,000
(2,000)
8,000