Assume that you are a team of graduate accountants working for BluePrint Pty Ltd, a public accounting firm situated at 297 York Street, Sydney, NSW 2000. The Manager of your firm, Mr. Aaron Mazars has asked you to prepare a statement of advice in response to various emails received from the firm’s clients raising several accounting issues. Please see the issues on the next page.

Client 3 (BKL Group Ltd) Re. Presentation/Disclosure of Non-controlling interest BKL Ltd is preparing its consolidated financial statements for the year ended 30 June 2021. The directors are wondering how non-controlling interest will be disclosed in their consolidated financial reports. On 1 July 2020, BKL Ltd purchased 70% of the shares of Subsidiary Ltd for $160,000. At the acquisition date, Subsidiary Ltd had issued capital of $100,000 and retained earnings of $100,000. Note: Goodwill was calculated as $20,000 using a full goodwill method. During the 2020/21 financial year, 

• BKL Ltd and Subsidiary Ltd recorded profits of $100,000 and $50,000 respectively. 

• BKL Ltd sold inventory with a cost of $5,000 to the Subsidiary for $$9,000. 80% of this inventory was still on hand of the Subsidiary on 30 June 2021. 

• Subsidiary Ltd adapted a fair valuation method and increased its Land value by $15,000. 

• On 30 June 2021, both BKL Ltd and Subsidiary Ltd declared a dividend of $10,000. The directors at BKL asked for your help with completing the consolidated financial statements. How should non-controlling interest be recorded on financial statements? Help the director identify all affected financial statements and sections of the financial statements with non-controlling interest amounts.