Vous êtes sur la page 1sur 4

www.IFRSbox.

com Example: How to consolidate Consolidation/Group Accounts

Mommy Corp has owned 80% shares of Baby Ltd since Baby's incorporation.
Below there are statements of financial positions of both Mommy and Baby at 31 December 20X4.
Prepare consolidated statement of financial position of Mommy Group as at 31 December 20X4.
Note: measure NCI at its proportionate share of Baby's net assets.

Mommy Group
Statement of financial position as at 31 December 20X4 STEP 1 STEP 2 STEP 3 Consolidated
Mommy Corp. Baby Ltd. Combine Eliminate Intragroup transactions St of FP

ASSETS
Non-current assets
Property, plant and equipment 120,000 90,000 210,000 210,000
Investment in Baby Ltd. (64 000 shares) 70,000 0 70,000 -70,000 0
See [2] below
Goodwill acquired in a business combination 6,000 6,000
Deferred tax asset 4,000 4,000 4,000
194,000 90,000 284,000 220,000
Current assets 0
Inventories 55,000 34,000 89,000 89,000
Trade and other receivables 0 0
Baby Ltd 8,000 8,000 -8,000 0
Other receivables 30,000 18,000 48,000 48,000
Cash and cash equivalents 20,000 5,000 25,000 25,000
113,000 57,000 170,000 162,000
TOTAL ASSETS 307,000 147,000 454,000 382,000

EQUITY & LIABILITIES


Equity
Equity attributable to owners of the parent
200 000 shares (1 CU each) -200,000 -200,000 -200,000
80 000 shares (1 CU each) -80,000 -80,000 80,000 0
See [3] below to verify.
Retained earnings -62,000 -45,000 -107,000 9,000 -98,000
See [1] below
Non-controlling interest -25,000 -25,000
-262,000 -125,000 -387,000 -323,000
Liabilities 0
Non-current liabilities 0
Deferred tax liability -2,000 -2,000 -2,000
Current liabilities 0
Trade payables 0 0
Mommy Corp. -8,000 -8,000 8,000 0
Other payables -35,000 -12,000 -47,000 -47,000
Loans repayable within 12 months -10,000 -10,000 -10,000
-45,000 -22,000 -67,000 -59,000
TOTAL EQUITY & LIABILITIES -307,000 -147,000 -454,000 -382,000
CHECK 0 0 0 0 0 0

Workings:
[1]
Non-controlling interest:
Net assets of Baby (=equity): -125,000
Share of NCI (=100%-80%) 20%
Non-controlling interest: -25,000
www.IFRSbox.com Example: How to consolidate Consolidation/Group Accounts

[2]
Goodwill:
Fair value of consideration paid: 70,000
NCI at acquisition: 16,000
Less Baby's net assets at acquisition: -80,000
Goodwill: 6,000

[3]
Consolidated retained earnings:
Retained earnings of Mommy: -62,000
Retained earnings of Baby attributable to Mommy: -36,000
(80%*Baby's retained earnings of 45 000 CU)
Consolidated retained earnings: -98,000
Example 4: How to consolidate
www.IFRSbox.com (Exam-style solution) Consolidation/Group Accounts

Mommy Corp has owned 80% shares of Baby Ltd since Baby's incorporation.
Below there are statements of financial positions of both Mommy and Baby at 31
December 20X4.
Prepare consolidated statement of financial position of Mommy Group as at 31
December 20X4.
Note: measure NCI at its proportionate share of Baby's net assets.

Mommy Group
Statement of financial position as at 31 December 20X4 Consolidated
Mommy Corp. Baby Ltd. St of FP

ASSETS
Non-current assets
Property, plant and equipment 120,000 90,000 210,000
Investment in Baby Ltd. (64 000 shares) 70,000 0 0
Goodwill acquired in a business combination 6,000 [2]
Deferred tax asset 4,000 4,000
194,000 90,000 220,000
Current assets
Inventories 55,000 34,000 89,000
Trade and other receivables 0
Baby Ltd 8,000 0
Other receivables 30,000 18,000 48,000
Cash and cash equivalents 20,000 5,000 25,000
113,000 57,000 162,000
TOTAL ASSETS 307,000 147,000 382,000

EQUITY & LIABILITIES


Equity
Equity attributable to owners of the parent
200 000 shares (1 CU each) -200,000 -200,000
80 000 shares (1 CU each) -80,000 0
Retained earnings -62,000 -45,000 -98,000 [3]
Non-controlling interest -25,000 [1]
-262,000 -125,000 -323,000
Liabilities
Non-current liabilities
Deferred tax liability -2,000 -2,000
Current liabilities
Trade payables 0
Mommy Corp. -8,000 0
Other payables -35,000 -12,000 -47,000
Loans repayable within 12 months -10,000 -10,000
-45,000 -22,000 -59,000
TOTAL EQUITY & LIABILITIES -307,000 -147,000 -382,000
CHECK 0 0 0

Workings:
[1]
Non-controlling interest:
Net assets of Baby (=equity): -125,000
Share of NCI (=100%-80%) 20%
Non-controlling interest: -25,000
Example 4: How to consolidate
www.IFRSbox.com (Exam-style solution) Consolidation/Group Accounts

[2]
Goodwill:
Fair value of consideration paid: 70,000
NCI at acquisition: 16,000
Less Baby's net assets at acquisition: -80,000
Goodwill: 6,000

[3]
Consolidated retained earnings:
Retained earnings of Mommy: -62,000
Retained earnings of Baby attributable to Mommy: -36,000
(80%*Baby's retained earnings of 45 000 CU)
Consolidated retained earnings: -98,000