On January 1, 2019, Turtle Co. issued equity instruments in exchange for 75% interest in Titan Co. On acquisition date, Turtle Co. elected to measure non-controlling interest at fair value. Turtle Co.’s management believes that the fair value of the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair value of the remaining interest. Titan Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 2019 statements of financial position of Turtle Co. and Titan Co. are summarize
On January 1, 2019, Turtle Co. issued equity instruments in exchange for 75% interest in Titan Co. On acquisition date, Turtle Co. elected to measure non-controlling interest at fair value. Turtle Co.’s management believes that the fair value of the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair value of the remaining interest.
Titan Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years.
The December 31, 2019 statements of financial position of Turtle Co. and Titan Co. are summarized below:
|
Turtle Co. |
Titan Co. |
|
|
ASSETS |
||
|
Investment in subsidiary (at cost) |
300,000 |
- |
|
Other assets |
1,372,000 |
496,000 |
|
TOTAL ASSETS |
1,672,000 |
496,000 |
|
LIABILITIES AND EQUITY |
||
|
Trade and other payables |
292,000 |
120,000 |
|
Share capital |
940,000 |
200,000 |
|
|
440,000 |
176,000 |
|
Total equity |
1,380,000 |
376,000 |
|
TOTAL LIABILITIES AND EQUITY |
1,672,000 |
496,000 |
No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in
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