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    Solvay Adv Acc Case 5B (Fiat Lux) - Solution Consolidation Entries Step Acquisition Version

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    Solvay Adv Acc Case 5B (Fiat Lux) - Solution Consolidation Entries Step Acquisition Version

    Uploaded by

    lola
    40 views5 pages

    Original Title

    Solvay Adv Acc Case 5B (Fiat Lux)_Solution Consolidation entries Step acquisition version (1)

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    40 views5 pages

    Solvay Adv Acc Case 5B (Fiat Lux) - Solution Consolidation Entries Step Acquisition Version

    Uploaded by

    lola

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Determination of NCI and consolidation goodwill as at 1/1/2000

    SE Equity at 1/1/2000 adjusted to fair values :

    Equity per books : 148.709


    FV adjustments : 18.000
    less DT at 34 % : (6.120)
    Total : 160.589
    NCI : x 20 %
    NCI value : 32.117,8

    Determination of the goodwill :

    Consideration paid
    at 1/1/2000 : 122.286
    FV of previously held
    interest : 18.000 shares
    x 4.076,2 € = 73.371,6
    NCI : 32.117,8
    Total : 227.775,4

    FV of 100 % of identifiable
    net assets : 160.589

    Difference = Goodwill: 67.186,4

    OR

    Consideration paid : 122.286


    FV of previously
    held interest : 73.371,6
    Total : 195.657,6

    FV of 80 % of identifiable
    net assets : 128.471,2

    Difference = Goodwill: 67.186,4

    Case 5B (Fiat Lux)_Solution.Consolidation entries & Consolidated fin. statements.Step acquisition version. / Journal entries / 6/11/2014 17:23
    Journal entries

    1. To eliminate the FL investment against SE equity at acquisition (control) date

    DT PP&E - Land 11.700.000


    DT PP&E - Buildings 6.300.000
    DT Capital 100.000.000
    DT Ret. Earnings 48.709.000
    CR DT Liabilities 6.120.000
    CR Financial assets Participations 149.286.000
    CR NCI 32.117.800
    CR Consolidated result 46.371.600
    DT Goodwill 67.186.400

    Total 233.895.400 233.895.400

    Case 5B (Fiat Lux)_Solution.Consolidation entries & Consolidated fin. statements.Step acquisition version. / Journal entries / 6/11/2014 17:23
    2. To account for additional depreciation in 2000 Add depreciation (252.000)
    DT effect 85.680
    DT Depreciation expense 252.000 Net at 100% (166.320)
    CR DT income 85.680 Group share 80 % (133.056)
    DT DT liabilities 85.680 NCI share 20 % (33.264)
    CR Buildings Accumulated Depreciation 252.000

    3. To reconcile intercompany transactions on equipments

    DT COGS 4 211 000


    CR Trade A/P 4 211 000
    DT Deferred taxes 1 431 740
    CR Deferred tax income 1 431 740

    4. To recognise inventory in transit

    DT Inventory in transit 4 211 000


    CR COGS 4 211 000
    CR Deferred taxes 1 431 740
    DT Deferred tax charge 1 431 740

    5. To eliminate intercompany sales/purchases

    DT Turnover 97 268 000


    CR COGS 97 268 000

    6. To eliminate intercompany profit in stock (ICOPIS)

    DT Changes in inventories (COGS)


    9 453 620
    CR Inventories 9 453 620
    DT Deferred tax assets 3 214 231
    CR Deferred tax income 3 214 231

    7. To eliminate interim dividend

    DT Financial income 3 982 500


    DT NCI 1 017 500

    Case 5B (Fiat Lux)_Solution.Consolidation entries & Consolidated fin. statements.Step acquisition version. / Journal entries / 6/11/2014 17:23
    CR Consolidated reserves
    result (equity) 5 000 000

    Case 5B (Fiat Lux)_Solution.Consolidation entries & Consolidated fin. statements.Step acquisition version. / Journal entries / 6/11/2014 17:23
    8. To eliminate intercompany bond

    DT Long term debt 39 000 000


    CR Long term A/R 39 000 000

    9. To eliminate intercompany interest

    DT Financial income 1 625 000


    CR Financial charges 1 625 000
    DT Accrued interest charges 1 625 000
    CR Accrued interest income 1 625 000

    10. To eliminate intercompany trade A/R and A/P

    DT Trade A/P (as reported) 35 530 000


    DT Trade A/P (correction) 4 211 000
    CR Trade A/R 39 741 000
    39 741 000 39 741 000

    11. To reclass in equity the dividend proposed at FL level

    DT Dividend payable 46 000 000


    CR Consolidated reserves
    result (equity) 46 000 000

    12. To account for minority share in 2000 reported profit

    DT NCI in result 3.341.877


    CR NCI 3.341.877

    13. To account for minority share in 2000 consolidation adjustments

    DT NCI 33.264
    CR NCI in result 33.264

    Case 5B (Fiat Lux)_Solution.Consolidation entries & Consolidated fin. statements.Step acquisition version. / Journal entries / 6/11/2014 17:23

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