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Example of Consolidated Statement of Financial Position
Parent Subsidiary
Non-current assets
Tangible assets $1,000 $600
Investment in Subsidiary $1,200
Net current assets $500 $600
2,700 1,200
Issued capital $100 $50
Retained earnings $2,600 $1,150
$2,700 $1,200
Additional information:
Parent bought 80% of subsidiary two years ago.
Subsidiary’s reserves were $150 at the date of acquisition.
Goodwill has been impaired by $200 since the date of acquisition.
Non-controlling interest is valued at the proportionate share of the subsidiary’s identifiable net assets; it is not credited with its share of goodwill.
Required:
Prepare the consolidated statement of financial position.
Expert Answer
| Parent | Subsidiary | Consolidate | |
| Tangible Asset | 1,000.00 | 600.00 | 1,600.00 |
| Investment in Subsidiary | 1,200.00 | – | – |
| Net Current Asset | 500.00 | 600.00 | 1,100.00 |
| Goodwill | |||
| Total asset | 2,700.00 | 1,200.00 | 2,700.00 |
| Issued Capital | 100.00 | 50.00 | 110.00 |
| Retained Earnings | 2,600.00 | 1,150.00 | 2,830.00 |
| Total liability | 2,700.00 | 1,200.00 | 2,940.00 |
| Good Will calculation | |||
| Net Worth of subsidiry | 1200 | ||
| Holding % | 80% | ||
| Parent Holding | 960 | ||
| Good will | 240 |
