Assume the same facts as in P4.7, except that P Co elects to measure non-controlling interests as
Question:
Assume the same facts as in P4.7, except that P Co elects to measure non-controlling interests as a proportion of identifiable net assets.
Required:
1. Prepare the consolidation adjusting entries for the year ended 31 December 20x3. Tax rate was 20%. Recognize tax effects on fair value differentials.
2. Perform an analytical check on the balance of non-controlling interests as at 31 December 20x3.
Data from P4.7
P Co acquired a controlling interest in Moonstone as follows:
P Co chose to measure non-controlling interests at fair value on acquisition date. The fair value of non-controlling interests in Moonstone Co as at date of acquisition was $250,000. The financial statements of P Co and Moonstone Co are shown below:
Step by Step Answer:
Advanced Financial Accounting An IFRS Standards Approach
ISBN: 9781285428765
4th Edition
Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah