Changing the way you learn

Question	Answer
Goodwill: The way in which goodwill is shared depends on the whether NCI's are calculated using Fair values OR net identifiable assets.	If Goodwill is calculated using FV's: It is shared among the Parent company and the Non-controlling interest holders. P=(CT - (NIA x Ctrl%)) NCI=(FV - (NIA x Non-Ctrl%)).
If Goodwill is calculated using the NIA: The whole amount goes to the Parent company only, NCI's do do not get a share.	Pro-forma entries: Start by derecognising any AccDep at acquisition, if present.
Post acquisition: The non-controlling shareholders' share of profits at acquisition net assets (equity) (as adjusted)- is credited to non-controlling interests. Do not forget INCREASES AS WELL. =Adjustment of Equity x Non-Ctrl%	Current year possible movements: 1.Profit 2.Transfer of reserves 3.Dividends 4.Omitted expenses and income
Dividends: Dividends to NCI's (from the S) must be debited to them, to reduce their interest in the group's net assets.	Dividends received by P from S is shown on Pro-forma entries but not on the SOCI since it is already included in their share of profits. Only dividends to NCI's and those declared by P can be shown.
Inventories: Pro-formas dr Sales cr COS unearned profits: dr COS cr Invetory

Consolidations

	Created by Anele Bani about 8 years ago