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Financial Reporting Assignment | Acquisition Analysis Statement

   

Added on  2020-05-16

8 Pages1101 Words390 Views
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Running head: CONSOLIDATIONConsolidationName of the Student:Name of the University:Authors Note:
Financial Reporting Assignment | Acquisition Analysis Statement_1

CONSOLIDATION1Acquisition AnalysisStatement showing FVNAdistributionParticularsAmountPEACE (65%)NCI (35%)Share Capital$690,000.00448500241500Retained earnings$280,000.0018200098000Total BV of Net Assets (A)$970,000.00$630,500.00$339,500.00Plant (6000X.6)$3,600.0023401260Land (9000X0.6)$5,400.0035101890Total FV adjustments (B)$9,000.0058503150Fair Value of Net Assets$979,000.00636350342650Statement showing calculation of GoodwillParticularsAmountConsideration Transferred$874,575.00Non-Controlling Interest$342,650.00Total Aggregate$1,217,225.00FVNA$979,000.00Goodwill$238,225.00Journal entry for acquisition of equity interestJournal EntryParticularsDebitCreditAcquisition EntryInvestment in Miles$874,575.00Cash$874,575.00(Being entry passed for recording acquisition of equity interest)
Financial Reporting Assignment | Acquisition Analysis Statement_2

CONSOLIDATION2Business Combination Valuation Reserve EntriesJournal EntryParticularsDebitCreditBusiness combination Valuation entries Entries at 30 June 2018Accumulated Depreciation$6,000.00Deferred tax Liability$2,400.00Business combination Valuation Reserve (BCVR) $3,600.00(Being plant undervalued now corrected)Depreciation expenses$57,108.33Retained earnings (4 years)$4,000.00Accumulated Depreciation$61,108.33Deferred tax liability$24,443.33Income Tax Expenses$22,843.33Retained Earning$1,600.00Land$9,000.00Deferred Tax Liability$3,600.00Business Combination valuation reserve$5,400.00(being land was undervalued now corrected)Goodwill $238,225.00Business Combination Valuation Entries$238,225.00(Being Goodwill recorded)Non-Controlling InterestCalculation of Non-Controlling InterestParticularsAmountTotal Shares690000Shares Acquired448500Shares for NCI241500NCI Percentage holdings35%
Financial Reporting Assignment | Acquisition Analysis Statement_3

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