Determine the Non-controlling interest in Net assests of subsidiary
Q: Assuming the Parent entity elects to measure the NCI at proportionate basis, the computation of non-…
A: Non controlling interest (NCI) : A non-controlling interest, also known as a minority interest, is…
Q: 1. Which is true regarding the Investment in Subsidiary Stock account? A. It is accounted for in…
A: Here is the answer of your first question Let's understand the basic Investment in subsidiary stock…
Q: Which is true regarding the Non controlling interest? [a] It is accounted for in the subsidiary’s…
A: Non-controlling interest is also known as a minority interest. Minority interest means held…
Q: Choose the letter of the item NOT belonging or related to the group in computing for Non-Controlling…
A: Firstly let us understand consolidated statements. Consolidated financial statements are prepared…
Q: Question 2 When there is a dividend payable by the subsidiary at acquisition date, under what…
A: Pre-acquisition entries are required to keep investments in subsidiaries out of the group of…
Q: Choose the correct. The noncontrolling interest represents an outside ownership in a subsidiary that…
A: Explanation to the given options: a) In the liability section: This is an incorrect choice as the…
Q: The Investment in a Subsidiary should be recorded on the parent’s books at the A. Fair value of the…
A: Acquisition: It is a case, when all or majority stocks of a company is purchased by another…
Q: . Which of the following entries appear on the parent company’s books to account for its investment…
A: Solution Note : Dear student as per the Q&A guideline we are required to answer the first…
Q: non-controlling interests
A: Non-controlling interest is the part of the equity held by the minority shareholders in a subsidiary…
Q: The investment in a subsidiary should be recorded on the parent's books at the O underlying book…
A: Acquisition: It is a case, when all or majority stocks of a company is purchased by another company.…
Q: Choose the correct. What is a basic premise of the acquisition method regarding accounting for…
A: Definition: Consolidated financial statements: When an investor company holds above 50% in the…
Q: When there is a dividend payable by the subsidiary at acquisition date, under what conditions should…
A: Pre-acquisition entries: Pre-acquisition entries are required to keep 'investment in subsidiaries'…
Q: Discuss whether the following items would meet the definition of an asset using the IFRS…
A: Explanation: 1. Definition of Asset: The asset is a Tangible or Intangible resource that will be…
Q: In determining controlling interest in consolidated income in the consolidated financial statements,…
A: Controlling interest is defined as the ownership interest in the business with adequate voting stock…
Q: 4. Which is true regarding the Non controlling interest? * [a] It is accounted for in the…
A: Solution Concept The consolidated financial statements is required to be prepared by the parent…
Q: ecorded in the applicable asset and liability accounts of the parent
A: Business combination refers to a transaction in which the acquirer has complete control over the…
Q: Which of the following would NOT be included in the acquisition cost?
A: The acquistion cost is the total cost incurred in the acuistion of…
Q: Explain how a non-consolidated subsidiary can be aform of off-balance-sheet financing.
A: Off-balance sheet financing is a form of borrowing money wherein the company is not required to…
Q: at acquisition date net assets of a subsidiary company are included in the consolidated financial…
A: The IAS 10 deals with the consolidation of financial statements. The process of consolidating the…
Q: Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.
A: Calculating total fair value from the purchase cost and Non Controlling Interest fair value.…
Q: Hi, may i know more clearer explanation to calculate the gain or loss on the disposal of the share…
A: When a company acquires 50% or more interest in an company, it means it is acquiring the…
Q: How is the non-controlling interest (NCI) in the subsidiary’s profit or loss presented in the…
A: Non controlling interest is the interest a shareholder has in a company where he holds less than 50%
Q: (a) Where the parent company does not hold 100 percent equity of the subsidiary company, what…
A: Parent Company: When a company has controlling interest over the operations of another company the…
Q: How should a parent consolidate its subsidiary’s revenues and expenses?
A: Revenue: Revenue refers to the income received from the business activity or sale of the output,…
Q: Wnen presenting a consolidated statement of financial position, the non-controlling interest is:
A: Non-controlling interest is also sometimes written as NCI. It arises when someone holds less than…
Q: How is a goodwill in a business combination measured according to PFRS 3? Consideration transferred…
A: As per PFRS 3 Goodwill is an intangible asset representing the future value of economic benefits…
Q: The parent company records its share of subsidiary’s income by A. Crediting Investment in Subsidiary…
A: The value strategy is a bookkeeping procedure utilized by an organization to record the benefits…
Q: In a share acquisition business combination resulting in a parent- subsidiary relationship, the…
A: When one company acquires the substantial shares in other company, then first company is known as…
Q: a parent company acquires a less-than-100 percent controlling interest in a subsidiary, what portion…
A: Controlling interest in a subsidiary refers to acquiring between 50% to less than 100% of the…
Q: Determine the non-controlling interest in net assets of subsidiary in the year 20x6
A: Non-controlling interest is the is the ownership position of the holder with minority shares in the…
Q: Th e non-controlling (minority) interest in consolidated subsidiaries is presented on thebalance…
A: Non-controlling or minority interest in consolidated subsidiaries means when the parent company…
Q: Discuss the implication of reporting NCI as a separate item of owners equity.
A: Introduction Non-Controllable Interest is also known as Minority Interest, which indicate the share…
Q: Using the acquisition method for a business combination, goodwill is generally defined as Select…
A: Using the acquisition method for a business combination goodwill is defined as the investment cost…
Q: How are rights, warrants, and options of subsidiary companies treated in the computation of…
A:
Q: Companies are required to value non-controlling interests on the acquisition date. Wat approaches…
A: Non Controlling Interest at acquisition date is measured using two methods, they are Fair Value…
Q: Identify appropriate placements for the components of the non controlling interest in consolidated…
A: Acquisition: The acquisition refers to the business combination when one entity or organization…
Q: Th e non-controlling (minority) interest in consolidated subsidiaries is presented on thebalance…
A: Non-controlling interest or Minority Interest is the portion of subsidiary company's that is not…
Q: In the consolidated statement of comprehensive income to be prepared by the parent corporation,…
A: A business combination is defined as an entity obtaining control of one or more businesses. The most…
Q: In preparing the Subsidiary company's Income distribution schedule (IDS), how is the total amount…
A: Income distribution schedule is the frequency of scheduled distributions of dividends or capital…
Q: The noncontrolling interest represents an outside ownership in a subsidiary that is not attributable…
A: Answer:
Q: Do you think the FASB made the correct decision in requiring consolidated financial statements to…
A: In an open and inclusive process, the FASB develops and publishes financial accounting standards to…
Q: In a share acquisition business combination resulting in a parent- subsidiary relationship, the…
A: The consolidated worksheet includes the book value of parent and subsidiary accounts along with the…
Q: (a) Where the parent company does not hold 100 percent equity of the subsidiary company, what…
A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…
Q: much is the non controlling interest in the net assets of the subsidiary on december 31,2021
A: Non Controlling interest will be enthusiasm for an organization whereby the organization claims…
Determine the Non-controlling interest in Net assests of subsidiary
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- On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.The following are several figures reported for Allister and Barone as of December 31, 2021: AllisterBaroneInventory$400,000$200,000Sales 800,000 600,000Investment incomenot given Cost of goods sold 400,000 300,000Operating expenses 180,000 250,000 Allister acquired 70 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $65,000 that was unrecorded on its accounting records and had a five-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $120,000 to Allister for $160,000. Of this amount, 20 percent remains unsold in Allister's warehouse at year-end. Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021:On January 1, 20X1, XYZ, Inc. purchased 70% of Set Corporation for $469,000. On that date the book value of the net assets of Set totaled $500,000. Based on the appraisal done at the time of the purchase, all assets and liabilities had book values equal to their fair values except as follows: Book Value Fair Value Inventory $100,000 $120,000 Land 75,000 85,000 Equipment (useful life 4 years) 125,000 165,000 The remaining excess of cost over book value was allocated to a patent with a 10-year useful life. During 20X1 XYZ reported net income of $200,000 and Set had net income of $100,000. What income from subsidiary did Promo include in its net income if Promo uses the simple equity method? a. $70,000 b. $42,000 c. $38,000 d. $110,000
- On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gainon acquisition of P100,000. Net assets of SCO were fairly valued except for inventorywhich was understated by P1,500,000. A third of these inventories remained unsoldas of the end of the calendar year.The operations of the two companies for 2021 are as follows:PCO SCOSales P3,100,000 P2,600,000(COGS) (1,300,000) (1,250,000)Gross profit 1,800,000 1,350,000(OPEX) (200,000) (150,000)1,550,0003,550,0001,850,0003,250,000Other income 0 200,000(Other expenses) (120,000) 0Net income P1,480,000 P 400,000In the consolidated statement of comprehensive income for the year endedDecember 31, 2021, how much is the cost of goods sold? A. 1,550,000B. 3,550,000C. 1,850,000D. 3,250,000 based on the information above, In the consolidated statement of comprehensiveincome for the year ended December 31, 2021, how much is the consolidated netincome attributable to the controlling interest? 1,830,0001,980,0001,760,0001,860,000On January 1, 2022, P Company acquired 80% of S Company for P2,000,000. The fair value of identifiable net assets is P1,800,000. NCI is measured at fair value. During 2022, P Company ships merchandise to S Company costing P800, 000 at 25% above cost. Additional data are as follows: P Company S Company Sales 5,500,000 2,500,000 Cost of Sales 3,200,000 1,600,000 Operating Expense 650,000 300,000 The ending inventories of S Company includes merchandise from P Company amounting to P50,000. Impairment of goodwill is P20,000. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES) Consolidated cost of sales is reported at The net income attributable to parent isOn January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P100,000. Net assets of SCO were fairly valued except for inventory which was understated by P1,500,000. A third of these inventories remained unsold as of the end of the calendar year. The operations of the two companies for 2021 are as follows: PCO SCO Sales P3,100,000 P2,600,000 (COGS) (1,300,000) (1,250,000) Gross profit 1,800,000 1,350,000 (OPEX) (200,000) (150,000) Other income 0 200,000 (Other expenses) (120,000) 0 Net income P1,480,000 P 400,000 Q1: In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the cost of goods sold? 1,550,000 1,850,000 3,550,000 3,250,000 Q2: based on the information above, In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the consolidated net income attributable to…
- On January 1, 2022, P Company acquired 80% of S Company forP2,000,000. The fair value of identifiable net assets is P1,800,000. NCI ismeasured at fair value. During 2022, P Company ships merchandise to SCompany costing P1,000, 000 at 20% above cost. Additional data are asfollows:P Company S CompanySales 5,500,000 2,500,000Cost of Sales 3,200,000 1,600,000Operating Expense 650,000 300,000The ending inventories of S Company includes merchandise from PCompany amounting to P60,000. Impairment of goodwill is P20,000.How much is the consolidated gross profit?AAA acquired a 70% interest in BBB on January 2, 20x1 for $468,000 when BBB net assets had a book value and fair value of $790,000. During 20x1, AAA sold inventory items that cost $780,000 to BBB for $1,040,000 and BBB's inventory at December 31, 20x1 included 1/2 of the merchandise. BBB also sold to AAA an inventory for $15,000 with a cost of $12,500, 70% were sold to unaffiliated customers. AAA reported separate income from its own operation of $585,000 and BBB reported a net loss of P390,000. Compute for the consolidated net income.Sanchez Company acquired inventories on June 1, 2021 from its 60% owned subsidiary, Black Corporation. The inventories were sold for P285,000, including the 20% mark up on cost. Out of these inventories, 70% were sold to outsiders during the current year and the rest was sold in 2022. During 2022, Sanchez Company reported net income of P880,000 and Black Corporation reported net income of P560,000. How much of the realized profit is to be allocated to non-controlling interest in 2022?
- TCO C) Floyd Company purchases Haeger Company for $800,000cash on January 1, 2011. The book value of Haeger Company’s netassets, as reflected on its December 31, 2010 balance sheet, is$620,000. An analysis by Floyd on December 31, 2010 indicates thatthe fair value of Haeger’s tangible assets exceeded the book valueby $60,000, and the fair value of identifiable intangible assetsexceeded book value by $45,000. How much goodwill should berecognized by Floyd Company when recording the purchase of HaegerCompany?On January 1, 20X1, Promo, Inc. purchased 70% of Set Corporation for $469,000. On that date the book value of the net assets of Set totaled $500,000. Based on the appraisal done at the time of the purchase, all assets and liabilities had book values equal to their fair values except as follows: Book Value Fair Value Inventory $100,000 $120,000 Land 75,000 85,000 Equipment (useful life 4 years) 125,000 165,000 The remaining excess of cost over book value was allocated to a patent with a 10-year useful life. During 20X1 Promo reported net income of $200,000 and Set had net income of $100,000. What income from subsidiary did Promo include in its net income if Promo uses the simple equity method? a. $33,000 b. $42,000 c. $70,000 d. $100,000Sansa Co. acquired 60% interest in Arya on January 1, 2025 for $46,800 when Arya's net assets had a book value equal to its fair value of $79,000. On the same year, Sansa sold inventory items costing $78,000 to Arya for $104,000 and Arya's inventory at December 31, 2025 included one-fourth of this merchandise. Sansa reported separate income from its own operations of $48,800, and Arya reported a net loss of $19,500 for the year. Compute for the consolidated net income,2025.