CONSOLIDATED STATEMENT OF FINANCIAL POSITION -STEP BY STEP |FINAL EXAM FEB 2022|FAR320

In this step by step video, we will learn how to prepare consolidated statement of financial position and discuss the following consolidation issues including adjustments for:

1. Calculation of Goodwill for acquisition of ordinary shares, preference shares and debentures in the subsidiary.
2. Downstream intercompany sale of inventories and elimination of unrealised profits on unsold inventories (Parent is the Seller) . Margin is used.
3.Intercompany sale of PPE (Parent is the Seller), elimination of unrealised profits and adjustment for overprovision of depreciation. Reducing balance method is adopted.
4. Intercompany preference dividends where both parent and subsidiary HAVE NOT declared and RECORDED the preference dividends (including elimination of intercompany dividends). SITUATION 2
5. Intercompany debenture interest where both parent and subsidiary HAVE NOT declared and RECORDED the debenture interest (including elimination of intercompany debenture interests). SITUATION 2.
6. Elimination of undiscounted intercompany balances of bills payable and receivables.
7. Non controlling interest measured at proportionate share of fair value of net assets in subsidiary on the acquisition date.
8. Impairment loss of partial goodwill.

[YusnalizaHamid]

Click the above link. The above playlist provides STEP BY STEP TUTORIAL on how to prepare CONSOLIDATED STATEMENT OF FINANCIAL POSITION for simple group structure using EXAM-BASED QUESTIONS WITH COMPLETE ANSWERS.

[diananadia]

For calculation of percentage why use units share? why not using the amount in SOFP given?