Question
Question 1.a. - Calculate the Non-Controlling Interest as at 30 June 2018 Working Date of acquisition % Equity Acquired Non-controlling Interest Non-Controlling interest Less appropriations
| Question 1.a. - Calculate the Non-Controlling Interest as at 30 June 2018 Working Date of acquisition % Equity Acquired Non-controlling Interest Non-Controlling interest Less appropriations Non-Controlling interest in retained earnings Non-Controlling Interest in Retained earnings
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Question 1 - Consolidation: Non-Controlling Interest
On the 1st July 2016, Bill Ltd acquired 60% of the issued shares of Van Ltd for $131,200.
| At that date the shareholders equity of Van Ltd was: | ||||||
| $ | ||||||
| Share Capital | 100,000 | |||||
| General Reserve | 35,000 | |||||
| Retained Earnings | 17,000 | |||||
| 152,000 | ||||||
| Additional Information for the year ended 30 June 2018: | ||||||
| i. | Inter-company sales are: Van Ltd to Bill ltd $45,000 | |||||
| ii. | The closing inventory of Bill Ltd include items acquired from Van Ltd during | |||||
| the year for $15,000. The unrealised profit on these items is $5,000. | ||||||
| iii. | On 1 July 2017, Van Ltd transferred an item of plant with a book value of $4,000 to Bill Ltd for $4,500. | |||||
| Bill Ltd has depreciated this plant at 10% per annum. | ||||||
| iv. | Van Ltd paid the final dividend declaed from 2017 profit. | |||||
| v. | The directors review the balance of goodwill each year. They agree that: | |||||
| a. For year ended 30 June 2017, goodwill is to be impaired by $8,000 | ||||||
| b. For year ended 30 June 2018, goodwill is to be impaired by $8,000 | ||||||
| Required: | |||||||||
| a. | Calculate the Non-Controlling Interest as at 30 June 2018 | ||||||||
| b. | Prepare journal entries to eliminate the investment in Van Ltd by Bill Ltd. | ||||||||
| c. | Prepare journal entries to eliminate any inter-company transactions | ||||||||
| d. | Complete the consolidated worksheet as at 30 June 2018 | ||||||||
| e. | Prepare a Consolidateed Statement of Profit and loss and other comprehensive income for the year ending 30 June 2018* | ||||||||
| f. | Prepare a Consolidated Statement of Changes in Equity for the year ending 30 June 2018* | ||||||||
| g. | Prepare a Consolidated Statement of Financial Position as at 30 June 2018* | ||||||||
| h. | Prepare graphical presentations (ie. graphs, charts, diagrams) of the information presented in the financial statements reflecting Parent and NCI | ||||||||
| * Disclosure notes not required | |||||||||
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