Phi acquired an 80% ownership interest in Alpha on 1 January 20x1 for $1,000,000. At the date
Question:
Phi acquired an 80% ownership interest in Alpha on 1 January 20x1 for $1,000,000. At the date of acquisition, Alpha showed the following balances under shareholders’ equity:
At the date of acquisition, excess of fair value of Alpha’s inventory over book value was $100,000. The inventory was still unsold as at 31 December 20x1. The fair value of non-controlling interests as at 1 January 20x1 was $250,000. The separate financial statements for Phi and Alpha for the year ended 31 December 20x1 are shown below. Ignore tax effects.
Required:
Complete the consolidated financial statements for Phi and Alpha for the year ended 31 December 20x1 under the parent and entity theories of consolidation.
Step by Step Answer:
Advanced Financial Accounting An IFRS Standards Approach
ISBN: 9781285428765
4th Edition
Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah