DipIFR Syllabus D. Preparation of external financial reports - Basic groups - Question (NCI @ FV method) - Notes ^{10 / 14}

P acquired 80% S when S’s Reserves were 40.

At that date the FV of S’s NA was 150.

Difference is due to Land.

There have been no issues of shares since acquisition.

P uses the FV of NCI method at acquisition, and at acquisition the FV of NCI was 35. No impairment of goodwill.

Prepare the consolidated set of accounts.

Step 1: Prepare S’s Equity Table

Now the extra 10 FV adjustment now must be added to the PPE when we come to do the SFP at the end.

Step 2: Goodwill

Step 3: Do any adjustments in the question

: NONE

Step 4: NCI

Step 5: Reserves

Step 6: Prepare the final SFP (with all adjustments included)