Assignment 3 Consolidation (answer the questions in Moodle)

PMAB acquires 100 percent of the shares in the subsidiary DB in June 30, 20x2. The purchase price is 400. The book value of equity at the purchase date in DB is 230. Of the difference between the equity and the purchase price, 100 before tax are referred to customer lists and amortized over 5 years. Complete the consolidated balance sheet and the consolidated income statement. The tax rate is 37,5 percent.

DB has sold products to PMAB at a selling price of 100 in December, year x2. At the end of the year all products are still included in the inventory for PMAB. The profit margin on the sale from DB was 25 percent.

31/12 20x2 PMAB DNBoteAdjustment Amortisation Intra group Intra group CBS

Goodwill	-	-A 107,5					107,5
Other intangibles	-	-A 100,0		-20,0			80,0
Real estate	-	140,0					140,0
Inventory	20,0	385,0				-25,0	380,0
Shares in DB	400,0	-B -400,0					0,0
Cash	-	50,0					50,0
Total assets	420,0	575,0	-192,5	-20,0		-25,0	757,5

Share capital*	400,0	150,0C -150,0					400,0
Other equity	-	130,0D -80,0		-12,5		-15,6	21,9
Deferred tax	-	45,0	37,5	-7,5		-9,4	65,6
Debt	20,0	250,0					270,0
Total debt/EQ	420,0	575,0	-192,5	-20,0		-25,0	757,5
* 80 mn shares
20x2	PMAB	DB	Adjustment	Amortisation	Intra group	Intra group	CIS
Sales	-	527,5	-263,8		-100,0		163,8
Operating costs	-	-400,0	200,0		100,0	-25,0	-125,0
Deprec/amortisation	-	-30,0E 15,0		-20,0			-35,0
EBIT		97,5	-48,8	-20,0	0,0	-25,0	3,8
Financial net	-	-17,5	8,8				-8,8
EBT	-	80,0	-40,0	-20,0	0,0	-25,0	-5,0
Deferred tax (37,5%)	-	-15,0	7,5	7,5		9,4	9,4
Taxes paid	-	-15,0	7,5				-7,5
Net income		50,0	-25,0	-12,5	0,0	-15,6	-3,1