ACT4143_Class

Organize these procedures of preparing the consolidated financial statements:

• 1. Calculate Cost of Investment (COI)

• Eliminate the COI and Recognize Goodwill

• Allocate Non-controlling Interest, Profit, and OCI

• 1. Adjust Fair Value of Assets at Acquisition Date

• Prepare Consolidated Financial Statements

Which of the following is eliminated during the consolidation process?

• Non-controlling interest

• Intercompany transactions

• Parent company’s equity

• Goodwill

During consolidation, how are intercompany transactions typically treated?

• They are fully recognized

• They are eliminated

• They are disclosed in notes

• They are taxed separately

1. ParentCo, ​ (a)   pays a certain amount to buy shares in SubCo, ​ (b)   . This is the cost of the investment which is amounted to ​ (c)   .

• Purple Bhd
• Satin Bhd
• RM12,000
• RM10,000
• Hilal Bhd
• Solar Bhd
• RM15,000

1. 
   ​ (a)   owns freehold land and its been revalued to their current market values,​ (b)   at the acquisition date. By referring to note (i)​ , the value of freehold land at 31 Dec. 2023 is valued at ​​ (c)   . At the beginning of the current year, the value of land is stated at​ (d)  

• Purple Bhd
• RM6,000,000
• RM8,000,000
• Satin Bhd

The net assets of subsidiary's at the date of acquisition

• RM10,000,000

• Net assets at DOA

• RM14,000,000

• Ordinary share

• RM2,000,000

• Retained earnings

• RM2,000,000

• Revaluation reserves

Goodwill on consolidation

In the consolidated journal entries: Eliminate the COI,

the value of goodwill on consolidation is equal to :

In the consolidated journal entries: Allocation to NCI,

the share of profit b/d is equal to :

In the consolidated journal entries: Allocation of NCI; Dr NCI share of profit after tax (a)   ; Dr NCI share of OCI (post) ​ (b)   .

• RM700,000
• RM500,000
• RM1,200,000
• RM800,000