communication partner
DISCLOSURE IN OTHER ENTITIES
CONSOLIDATED BALANCE SHEET - how to ?
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CALCULATION OF PURCHASE DISCREPANCY AND NONCONTROLLING INTEREST |
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|
Cost of investment in SUB Inc. |
€ 900.000 |
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|
|
||||||
|
Shareholders' equity of SUB Inc. |
|
||||||
|
|
Common shares |
150.000 |
|
||||
|
|
Retained earnings |
250.000 |
|
||||
|
|
400.000 |
|
|||||
|
POP Corp.'s ownership |
90% |
360.000 |
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Purchase discrepancy |
540.000 |
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|
|
|
||||||
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Allocated |
(FV-BV) x 90% |
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|
Buildings & equipment (net) |
300.000 |
x 90% = |
270.000 |
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||
|
|
Patents |
200.000 |
x 90% = |
180.000 |
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||
|
|
Deferred charges |
(120.000) |
x 90% = |
-108.000 |
|
342.000 |
|
|
Balance - Goodwill |
198.000 |
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CALCULATION OF NONCONTROLLING INTEREST |
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|
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Shareholders' equity of SUB Inc. (above) |
400.000 |
|||||
|
|
Noncontrolling ownership |
10% |
|||||
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|
€ 40.000 |
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CONSOLIDATED BALANCE SHEET WORKING PAPER |
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POP CORP. |
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CONSOLIDATED BALANCE SHEET |
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Jänner 1, 2012 |
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Adjustments and Eliminations |
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|
POP |
SUB |
|
Dr. |
|
Cr. |
Consolidated |
|
|
Assets: Dr (Cr) |
|
|||||||
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|
Cash |
110.000 |
85.000 |
195.000 |
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|
Accounts receivable |
140.000 |
80.000 |
220.000 |
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Inventory |
110.000 |
55.000 |
165.000 |
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|
|
Buildings & equipment |
1.500.000 |
740.000 |
3 |
270.000,00 |
3 |
400.000 |
2.110.000 |
|
|
Accum. amort. |
-700.000 |
-400.000 |
3 |
400.000,00 |
-700.000 |
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|
Land |
60.000 |
60.000 |
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|
Patents |
3 |
180.000,00 |
180.000 |
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|
Deferred charges |
120.000 |
3 |
108.000 |
12.000 |
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|
Investment in Silly |
900.000 |
1 |
900.000 |
0 |
|||
|
|
Purchase discrepancy |
1 |
540.000,00 |
3 |
540.000 |
0 |
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Goodwill |
3 |
198.000,00 |
198.000 |
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|
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|
2.060.000 |
740.000 |
2.440.000 |
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Liab. & Equities: (Dr) Cr |
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|
Accounts payable |
200.000 |
100.000 |
300.000 |
||||
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|
Notes payable |
60.000 |
240.000 |
300.000 |
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Common shares |
1.500.000 |
150.000 |
1 |
135.000,00 |
1.500.000 |
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|
2 |
15.000,00 |
|
|||||
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Retained earnings |
300.000 |
250.000 |
1 |
225.000,00 |
300.000 |
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2 |
25.000,00 |
|
|||||
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Noncontrolling interest |
2 |
40.000 |
40.000 |
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|
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|
€ 2.060.000 |
€ 740.000 |
|
€ 1.988.000 |
|
€ 1.988.000 |
€ 2.440.000 |
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CONSOLIDATED INCOME STATEMENT - how to ?
|
CALCULATION OF PURCHASE DISCREPANCY AND NONCONTROLLING INTEREST |
|||||||
|
Cost of investment in SUB Inc. |
€ 900.000 |
||||||
|
|
|
||||||
|
Shareholders' equity of SUB Inc. |
|
||||||
|
|
Common shares |
150.000 |
|
||||
|
|
Retained earnings |
250.000 |
|
||||
|
|
400.000 |
|
|||||
|
POP ownership |
90% |
360.000 |
|||||
|
Purchase discrepancy |
540.000 |
||||||
|
|
|
||||||
|
Allocated |
(FV-BV) x 90% |
|
|||||
|
|
Buildings & equipment (net) |
300.000 |
x 90 % = |
270.000 |
|
||
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Patents |
200.000 |
x 90 % = |
180.000 |
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||
|
|
Deferred charges |
-120.000 |
x 90 % = |
-108.000 |
342.000 |
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|
Goodwill |
€ 198.000 |
||||||
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|
||||||
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CALCULATION OF NONCONTROLLING INTEREST |
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|
||||||
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|
Shareholders' equity of SUB Inc. (above) |
€ 400.000 |
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Noncontrolling ownership |
10% |
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|
€ 40.000 |
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PURCHASE DISCREPANCY AMORTIZATION AND GOODWILL IMPAIRMENT SCHEDULE |
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# |
|
Balance |
Amortization/ impairment |
|
Amortization/ impairment |
|
Balance |
|
yrs |
Jan. 1, 2011 |
2011 |
|
2012 |
|
Dec. 31, 2012 |
|
|
10 |
Buildings & equipment (net) |
270.000 |
27.000 |
27.000 |
216.000 |
||
|
4 |
Patents |
180.000 |
45.000 |
45.000 |
90.000 |
||
|
3 |
Deferred charges |
-108.000 |
(36.000) |
(36.000) |
(36.000) |
||
|
n/a |
Goodwill |
198.000 |
4.950 |
- |
193.050 |
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|
€ 540.000 |
€ 40.950 |
€ 36.000 |
€ 463.050 |
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CALCULATION OF CONSOLIDATED NET INCOME |
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|
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POP Corp. net income - cost method |
€ 163.000 |
||||||
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Less: |
Dividends from Silly Inc. |
(63.000) |
|||||
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|
POP. net income, own operations |
100.000 |
|||||
|
Less: |
Purchase discrepancy amortization/impairment |
-€ 36.000 |
|
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|
|
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SUB Inc. net income |
€ 213.500 |
|
||||
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POP Corp. ownership |
90% |
192.150 |
156.150 |
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|
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POP. net income - equity method, |
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which is equal to consolidated net income |
€ 256.150 |
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Noncontrolling interest in SUB Inc. net income |
€ 21.350 |
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CALCULATION OF CONSOLIDATED OPENING RETAINED EARNINGS |
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|
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POP's retained earnings at Jan. 1, 2012 - cost method |
€ 420.000 |
|
|||||
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Less: |
purchase discrepancy amortization/ impairment |
|
|||||
|
|
to the end of the year 2012 |
-40.950 |
|
||||
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|
|
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Plus: |
SUB's retained earnings at Jan. 1, 2012 |
€ 275.000 |
|
||||
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|
SUB's retained earnings at acquisition |
250.000 |
|
||||
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Increase since acquisition |
25.000 |
|
||||
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|
POP's ownership |
90% |
22.500 |
|
|||
|
|
|
||||||
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Consolidated retained earnings at Jan. 1, 2012 |
€ 401.550 |
|
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|
|
|
|
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|
|
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CONSOLIDATED FINANCIAL STATEMENT WORKING PAPER |
|
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|
POP CORP. |
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CONSOLIDATED FINANCIAL STATEMENT |
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|
December 31, 2012 |
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|
Eliminations |
|
||||||
|
|
POP |
SUB |
|
Dr. |
|
Cr. |
Consolidated |
|
|
|
|
|||||||
|
|
Sales |
€ 1.680.000 |
€ 1.200.000 |
€ 2.880.000 |
||||
|
|
Dividend income |
70.000 |
b |
63.000 |
7.000 |
|||
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|
Investment income |
1 |
156.150 |
b |
156.150 |
- |
||
|
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Other income |
125.000 |
125.000 |
|||||
|
|
€ 1.750.000 |
€ 1.325.000 |
€ 3.012.000 |
|||||
|
|
Cost of Sales |
1.120.000 |
720.000 |
1.840.000 |
||||
|
|
Amortization expense |
85.000 |
90.000 |
3 |
36.000 |
211.000 |
||
|
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Other expenses |
351.000 |
244.500 |
595.500 |
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Income tax expense |
31.000 |
57.000 |
88.000 |
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|
1.587.000 |
1.111.500 |
2.734.500 |
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|
|
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Net income - entity |
277.500 |
||||||
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Noncontrolling interest |
4 |
21.350 |
(21.350) |
||||
|
|
Net Income |
163.000 |
213.500 |
256.150 |
||||
|
|
|
|||||||
|
|
Retained earnings, |
420.000 |
275.000 |
a |
18.450 |
401.550 |
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|
|
January 1, 2003 |
|
|
2 |
275.000 |
|
||
|
|
583.000 |
488.500 |
657.700 |
|||||
|
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Dividends |
100.000 |
70.000 |
1 |
63.000 |
100.000 |
||
|
|
|
|
5 |
7.000 |
|
|||
|
|
Retained earnings, |
|
||||||
|
|
December 31, 2003 |
€ 483.000 |
€ 418.500 |
€ 557.700 |
||||
|
|
|
|||||||
|
|
Assets: |
|
||||||
|
|
Cash |
155.500 |
45.000 |
200.500 |
||||
|
|
Accounts receivable |
160.000 |
116.000 |
276.000 |
||||
|
|
Inventory |
140.000 |
75.000 |
215.000 |
||||
|
|
Buildings & equipment |
1.400.000 |
840.000 |
3 |
270.000 |
3a |
400.000 |
2.110.000 |
|
|
Accumulated amort. |
(655.000) |
(495.000) |
3a |
400.000 |
3 |
54.000 |
(804.000) |
|
|
Land |
185.000 |
60.000 |
245.000 |
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|
Investment in subsidiary |
900.000 |
- |
b |
93.150 |
a |
18.450 |
- |
|
|
1 |
93.150 |
|
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|
|
2 |
881.550 |
|
|||||
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Other investments |
100.000 |
150.000 |
250.000 |
||||
|
|
Deferred charges |
40.000 |
3 |
36.000 |
4.000 |
|||
|
|
Patents |
3 |
90.000 |
90.000 |
||||
|
|
Goodwill |
3 |
193.050 |
193.050 |
||||
|
|
Purchase discrepancy |
2 |
499.050 |
3 |
499.050 |
- |
||
|
|
€ 2.385.500 |
€ 831.000 |
€ 2.779.550 |
|||||
|
|
|
|||||||
|
|
Liab. & Equities: |
|
||||||
|
|
Accounts payable |
225.000 |
215.000 |
440.000 |
||||
|
|
Notes payable |
177.500 |
47.500 |
225.000 |
||||
|
|
Common shares |
1.500.000 |
150.000 |
2 |
150.000 |
1.500.000 |
||
|
|
Retained earnings |
483.000 |
418.500 |
557.700 |
||||
|
|
Noncontrolling |
5 |
7.000 |
2 |
42.500 |
56.850 |
||
|
|
interest |
4 |
21.350 |
|
||||
|
|
€ 2.385.500 |
€ 831.000 |
|
€ 2.272.200 |
|
€ 2.272.200 |
€ 2.779.550 |
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|
|
|
|
|
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|
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|
INTERCOMPANY TRANSACTIONS - how to ?
|
|
INTERCOMPANY RECEIVABLES AND PAYABLES |
|
|
|
|
100.000 |
|
|
|
Interest |
2.500 |
|||||
|
|
|
||||||
|
|
INTERCOMPANY SALES AND PURCHASES |
800.000 |
|||||
|
|
|
||||||
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|
INTERCOMPANY PROFITS |
Before tax |
25% |
After Tax |
|||
|
|
Opening inventory - SUB selling |
40.000 |
10.000 |
30.000 |
|||
|
|
Opening inventory - POP selling |
0 |
0 |
0 |
|||
|
|
Ending inventory - SUB selling |
48.000 |
12.000 |
36.000 |
|||
|
|
Ending inventory - POP selling |
0 |
0 |
0 |
|||
|
|
|
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|
INTERCOMPANY SALE OF LAND |
|
|||||
|
|
SUB selling, gain - Oct. 1, 2012 |
125.000 |
20.000 |
105.000 |
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|
|
|
|
|
|
|
|
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|
CALCULATION OF CONSOLIDATED NET INCOME |
|||||||
|
|
|
||||||
|
Net income - POP |
€ 163.000 |
||||||
|
Less: |
dividends from SUB |
63.000 |
|||||
|
|
POP net income, own operations |
100.000 |
|||||
|
Plus: |
opening inventory profit (net) |
- |
|
||||
|
Less: |
ending inventory profit (net) |
- |
|
||||
|
|
amort. of purchase discrepancy - 2012 |
(36.000) |
|
||||
|
|
|
||||||
|
Net income - SUB |
216.000 |
|
|||||
|
Plus: |
opening inventory profit (net) |
30.000 |
|
||||
|
Less: |
ending inventory profit (net) |
36.000 |
|
||||
|
|
unrealized gain on sale of land |
105.000 |
|
||||
|
Adjusted net income |
105.000 |
|
|||||
|
POP's ownership |
90% |
94.500 |
58.500 |
||||
|
|
|
||||||
|
Consolidated net income |
€ 158.500 |
||||||
|
|
|
||||||
|
Noncontrolling interest - income statement |
€ 10.500 |
||||||
|
|
|
|
|
|
|
|
|
|
CALCULATION OF CONSOLIDATED OPENING RETAINED EARNINGS |
|||||||
|
|
|
||||||
|
POP's retained earnings at Jan. 1, 2003 |
€ 420.000 |
||||||
|
Less: |
purchase discrepancy amortization/impairment - 2010 |
-40.950 |
|
||||
|
|
ending inventory profit (net) |
- |
-40.950 |
|
|||
|
|
|
||||||
|
Plus: |
SUB's retained earnings at Jan. 1, 2012 |
275.000 |
|
||||
|
|
SUB's retained earnings at acquisition |
250.000 |
|
||||
|
|
SUB's post acquisition earnings |
25.000 |
|
||||
|
|
Less: ending inventory profit (net) |
(30.000) |
|
||||
|
|
gain on sale of land (net) |
- |
|
||||
|
|
Adjusted net income |
(5.000) |
|
||||
|
|
Practical's ownership |
90% |
(4.500) |
-45.450 |
|||
|
|
|
||||||
|
Consolidated retained earnings at Jan. 1, 2012 |
€ 374.550 |
||||||
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED FINANCIAL STATEMENT WORKING PAPER |
|
|||||||
|
POP CORP. |
||||||||
|
CONSOLIDATED FINANCIAL STATEMENT |
||||||||
|
December 31, 2012 |
||||||||
|
|
Eliminations |
|
||||||
|
|
PRACTICAL |
SILLY |
|
Dr. |
|
Cr. |
Consolidated |
|
|
|
|
|||||||
|
|
Sales |
€ 1.680.000 |
€ 1.200.000 |
7 |
€ 800.000 |
€ 2.080.000 |
||
|
|
Investment income |
70.000 |
2.500 |
b |
63.000 |
b |
58.500 |
7.000 |
|
|
1 |
58.500 |
|
|||||
|
|
10 |
2.500 |
|
|||||
|
|
Gain on sale of land |
|
125.000 |
9 |
125.000 |
0 |
||
|
|
1.750.000 |
1.327.500 |
2.087.000 |
|||||
|
|
Cost of Sales |
1.120.000 |
720.000 |
8 |
48.000 |
4 |
40.000 |
1.048.000 |
|
|
7 |
800.000 |
|
|||||
|
|
Amortization expense |
85.000 |
90.000 |
3 |
36.000 |
211.000 |
||
|
|
Other expenses |
351.000 |
244.500 |
10 |
2.500 |
593.000 |
||
|
|
Income tax expense |
31.000 |
57.000 |
4 |
10.000 |
8 |
12.000 |
66.000 |
|
|
|
|
9 |
20.000 |
|
|||
|
|
1.587.000 |
1.111.500 |
1.918.000 |
|||||
|
|
|
|||||||
|
|
Net income - entity |
169.000 |
||||||
|
|
Noncontrolling interest |
5 |
10.500 |
-10.500 |
||||
|
|
Net Income |
163.000 |
216.000 |
158.500 |
||||
|
|
|
|||||||
|
|
Retained earnings, |
420.000 |
275.000 |
a |
45.450 |
374.550 |
||
|
|
Jan. 1, 2012 |
|
|
2 |
275.000 |
|
||
|
|
583.000 |
491.000 |
533.050 |
|||||
|
|
Dividends |
100.000 |
70.000 |
1 |
63.000 |
100.000 |
||
|
|
|
|
6 |
7.000 |
|
|||
|
|
Retained earnings, |
|
||||||
|
|
December 31, 2012 |
€ 483.000 |
€ 421.000 |
€ 433.050 |
||||
|
|
|
|||||||
|
|
Assets: |
|
||||||
|
|
Cash |
€ 155.500 |
€ 45.000 |
€ 200.500 |
||||
|
|
Accounts receivable |
160.000 |
116.000 |
276.000 |
||||
|
|
Inventory |
140.000 |
75.000 |
4 |
40.000 |
2 |
40.000 |
167.000 |
|
|
8 |
48.000 |
|
|||||
|
|
Buildings & equipment |
1.400.000 |
900.000 |
3 |
270.000 |
3a |
400.000 |
2.170.000 |
|
|
Accumulated amort. |
-655.000 |
-495.000 |
3a |
400.000 |
3 |
54.000 |
-804.000 |
|
|
Land |
185.000 |
0 |
9 |
125.000 |
60.000 |
||
|
|
Investment in subsidiary |
900.000 |
0 |
1 |
4.500 |
a |
45.450 |
0 |
|
|
b |
4.500 |
|
|||||
|
|
2 |
854.550 |
|
|||||
|
|
Due from Practical |
0 |
102.500 |
10 |
102.500 |
0 |
||
|
|
Other investments |
100.000 |
50.000 |
150.000 |
||||
|
|
Deferred charges |
40.000 |
3 |
36.000 |
4.000 |
|||
|
|
Patents |
3 |
90.000 |
90.000 |
||||
|
|
Goodwill |
3 |
193.050 |
193.050 |
||||
|
|
Purchase discrepancy |
2 |
499.050 |
3 |
499.050 |
0 |
||
|
|
€ 2.385.500 |
€ 833.500 |
€ 2.506.550 |
|||||
|
|
|
|||||||
|
|
Liab. & Equities: |
|
||||||
|
|
Accounts payable |
€ 285.000 |
€ 245.000 |
|
|
|
|
€ 530.000 |
|
|
Payable to Silly |
102.500 |
0 |
10 |
102.500 |
0 |
||
|
|
Future income taxes |
15.000 |
17.500 |
2 |
10.000 |
4 |
10.000 |
500 |
|
|
8 |
12.000 |
|
|||||
|
|
9 |
20.000 |
|
|||||
|
|
Common shares |
1.500.000 |
150.000 |
2 |
150.000 |
1.500.000 |
||
|
|
Retained earnings |
483.000 |
421.000 |
433.050 |
||||
|
|
Noncontrolling |
6 |
7.000 |
2 |
39.500 |
43.000 |
||
|
|
interest |
5 |
10.500 |
|
||||
|
|
€ 2.385.500 |
€ 833.500 |
|
€ 3.272.050 |
|
€ 3.272.050 |
€ 2.506.550 |
|
|
|
|
|
|
|
|
|
|
|