Consolidated Income Statement参考.ppt

Consolidated Income Statement Parent and a subsidiary Form Consolidation process P(100%) +S (from acq. date to rep. date if mid-year acquisition, or annual amounts) for each item in section A Impairment loss on goodwill is add to operating expenses or other items –NCI should be adjusted under fair value method Changes in FV adjustment are deducted from or added to COS or operating expenses –NCI should be adjusted Continued Effect of intra-group transactions are eliminated. –NCI should be adjusted for URP from upstream sales. ①Transfer of inventory, p74 Continued ②Transfer of non-current assets Dr. Operating expense (URProfit) Cr. NCA Dr. NCA Cr. Operating expense (URLoss) ?Deduct intra-group loan interest from both finance cost and Investment income ?Deduct subsidiary’s dividends from investment income Continued Profit after tax available to NCI in section B =NCI% * [(Profit after tax (S) (from acq. date to rep. date if mid-year acquisition, or annual amounts) – impairment loss on goodwill if FV method +△FV adjustments –URP from upstream sales] Continued ?Profit after tax available to Group in section B = profit after tax –PAT available to NCI Check Profit after tax available to Group X Dividend (proposed or paid by P) (X) Retained profit for the period X Retained earnings, b/f X Retained earnings, c/f X Example 1($000), p72 Acq. date several yrs ago Rep. date 31 Dec, x4 P%=75% NCI%=25% Investment income eliminated -1.5 PAT to NCI = 42*25% = 10.5 Example 2($000), p76 Acq. date 1 Jan, x9 Rep. date 31 Dec, x9 P%=60% NCI%=40% Downstream URP=36*(84-56)/84=12 Rev -84, COS -84+12 Investment income eliminated -36 PAT to NCI = 134*40% = 53.6 Test 1($000), p80 Acq. date 1 Jan, x6 Rep. date 31 Dec, x7 P%=75% NCI%=25% (1)Upstream sales URP=20*[1/3/(1+1/3)]*(1-20%)=4 ---NCI Rev -20, COS -20+4 (2) Impairment loss on goodwill =5(operating cost)