合并报表会计

ConsolidationMethod,2,DefinitionsAASB127Para.4,ConsolidatedFinancialStatementsarethefinancialstatementsofagrouppresentedasthoseofasingleeconomicentityGroupaparentandallitssubsidiariesParententityanentitythathasoneormoresubsidiariesSubsidiaryanentityincludinganunincorporatedentitysuchasapartnership,thatiscontrolledbyanotherentity,3,Natureofconsolidatedfinancialstatements,Consolidatedstatementsarethecombinedfinancialstatementsforagroup.AASB3BusinessCombinationsAppendixAbusinesscombination“Thebringingtogetherofseparateentitiesorbusinessesintoonereportingentity”,4,AppendixAbusinessdefinedas:Anintegratedsetofactivitiesandassetsconductedandmanagedforthepurposeofproviding:Areturntoinvestors;orlowercostsorothereconomicbenefitsdirectlyandproportionatelytopolicyholdersorparticipants.,5,Theacquisitionofanentitycontrastswiththeacquisitionofagroupofassets.AccountingforagroupofassetsisbasedonAASB116Property,PlantandEquipment.,6,Consolidatedfinancialstatementsprovideinformationonthefinancialperformanceandpositionofmultipleentitieswhicharetreatedasasinglereportingentity.Thesestatementsshowonlytheresultsoftransactingwithpartiesexternaltotheeconomicentity.,7,Natureofconsolidatedfinancialstatements,Theconsolidatedfinancialstatementsareproducedusingtheinformationcontainedinthefinancialstatementsoftheentitieswithintheeconomicentity,howevertheaccountsoftheindividualentitiesarenotaffectedTheconsolidatedfinancialstatementsconsistof:-Consolidatedstatementofcomprehensiveincome,-Consolidatedstatementofchangesinequity-Consolidatedstatementoffinancialposition.,8,Natureofconsolidatedfinancialstatements,Whohastoprepareconsolidatedfinancialstatements?AASB3para17:“Anacquirershallbeidentifiedforallbusinesscombinations.Theacquireristhecombiningentitythatobtainscontroloftheothercombiningentitiesorbusinesses.”,9,AASB3AppendixA,Reportingentity-Anentityinrespectofwhichitisreasonabletoexpecttheexistenceofuserswhorelyontheentitysgeneralpurposefinancialreportforinformationthatwillbeusefultothemformakingandevaluatingdecisionsabouttheallocationofresources.Areportingentitycanbeasingleentityoragroupcomprisingaparentandallofitssubsidiaries.,10,Consolidatedfinancialstatements,Consolidatedfinancialstatementsarepreparednotjustfortheshareholdersoftheparententity,butalsoforarangeofusers-creditors,employees,lenders,financialadvisers,analysts.ReasonsforConsolidationTorepresentasfaithfullyaspossiblethefinancialposition,financialperformanceandcashflowsofaparentanditssubsidiariesRelevanttousersUnderstandabletousersComparegrouptootherentitiesbyuser,11,ConceptsofConsolidation,EntityconceptofconsolidationassetsandliabilitiesofparentandsubsidiaryNoncontrollinginterest(NCI)equityParententityconceptofconsolidationassetsandliabilitiesofparentandsubsidiaryNCIisaliabilityProprietaryconceptofconsolidationPro-rataconsolidation,basedonparentsshareofsubsidiaryassetsandliabilities,12,Controlasthecriterionforconsolidation,Control-AASB3AppendixA“Thepowertogovernthefinancialandoperatingpoliciesofanentityorbusinesssoastoobtainbenefitsfromitsactivities”.Subsidiaryisanentitythatiscontrolledbyanotherentity.Hencedeterminationofwhetheroneentitycontrolsanotheriscrucialtothedeterminationofwhichentitiesshouldprepareaconsolidatedfinancialreport.,13,Control,Twopartstothedefinition:(thepowercriterion)theabilitytodirectthefinancialandoperatingpoliciesofanotherentity.(thebenefitcriterion)theabilitytoobtainbenefitsfromtheotherentity.Passiveversusactivecontrolmaynotbeactivelyinvolvedinthemanagementof.Non-sharedcontrolcanonlybeonecontrollingentity.,14,Control,LevelofshareownershipAASB127para13controlispresumedtoexistwhentheparentowns,directlyorindirectlythroughsubsidiaries,morethanhalfofthevotingpowerofanentityi.emorethan50%ofthesharesofanotherentity.Whereownershipinterestislessthan50%thereislessconsensusaboutwhethercontrolexists.,15,Existenceofeffectivecontrol,Factorsthatmightindicatetheexistenceofcontrol(AASB127,par.13)(cont.)Controlalsoexistswhentheparentownshalforlessofthevotingpowerofanentitywhenthereispowerovermorethanhalfofthevotingrightsbyvirtueofanagreementwithotherinvestors;(b)powertogovernthefinancialandoperatingpoliciesoftheentityunderastatuteoranagreement;(c)powertoappointorremovethemajorityofthemembersoftheboardofdirectorsorequivalentgoverningbodyandcontroloftheentityisbythatboardorbody;or(d)powertocastthemajorityofvotesatmeetingsoftheboardofdirectorsorequivalentgoverningbodyandcontroloftheentityisbythatboardorbody.,16,Consolidationadjustments,AASB127para18-31CombinetheaccountsoftheentitiesButsubjectto3typesofadjustments:(i)Thesubstitutioneliminationentry(ii)Eliminationofinter-entitytransactionse.g.sales,andtheireffects(iii)AccountingforanyNoncontrollinginterest,17,Consolidationadjustments,ConsolidationadjustmentsareNOTmadeintherecordsoftheparentorthesubsidiary,butonaconsolidationworksheetorinaspecialconsolidationjournal.Mayneedtorepeatcertainadjustmentseveryyear.,18,Consolidationworksheetformat,19,1.Theeliminationentry,Ineffectwe:(i)substitutetheassetsandliabilitiesofthesubsidiaryfortheasset“SharesinSLtd”thatisshownontheparentcompanysbalancesheet(ii)eliminatetheparentcompanysinterestintheacquisitiondateequityofthesubsidiary,20,PLtd80%SLtd,Theeliminationentry,21,Theeliminationentry,Immediatelybeforeacquisition:PLtdSLtdSharecapital$200$150Retainedearnings100100$300$250Cash$50$250SharesinSLtd250_-$300$250Q:whataretheassets,andequityoftheeconomicentity?,22,Theeliminationentry,Wecannotsimplyaddthefinancialstatementstogether:PLtdSLtdSumSharecapital$200$150$350Retainedearnings100100200$300$250$550Cash$50$250$300SharesinSLtd250_-250$300$250$550,23,Theeliminationentry,Theeconomicentitysfinancialpositionis:Sharecapital$200(CapitalofPLtd)Ret.earnings100(Ret.earningsofPLtd)$300Cash$300(PLtd+SLtd)Whenaddingthefinancialstatementstogetherweneedtomakeadjustments.,24,Theeliminationentry,Adjustments:(a)Eliminate“SharesinSLtd”Anentitycannotshowsharesinitselfasanasset.SharesinScannotappearonthegroupbalancesheet.(b)EliminatetheequityofSLtdexistingatacquisitiondatei.e.thepre-acquisitionequityIncludingboththenetassetsofSLtdandtheequityaccountsofSattheacquisitiondatewoulddouble-countthenetassetsofS.,25,Theeliminationentry,Thisentryeliminatestheinvestmentaccountoftheparententity(“SharesinSLtd”)andtheparentcompanys100%interestintheacquisition-dateequityofthesubsidiary:ShareCapitalDr150RetainedEarningsDr100SharesinSLtdCr250,26,27,Theeliminationentry,Theeliminationentrycanbepreparedusinganacquisitionanalysis:At1July2004:FVofnetassetsofSLtd=$250cash($150capital+$100ret.earn.)FVacquiredbyPLtd=100%x$250=$250Costofacquisition=$250Goodwill/Gainonbargainpurchase=zero,28,Theeliminationentry,Assumeinthe2004-5periodthatSLtdrecordsanetprofitaftertaxof$75.Theseareallpost-acquisitionprofitstheydonotaffecttheeliminationentry.Theconsolidatedfinancialstatementsshowonlythepost-acquisitionequityofthesubsidiary.ALLpre-acquisitionequityofthesubsidiaryiseliminatedonconsolidation.,29,30,Theeliminationentry,Theentryat30/6/05is:RetainedProfits(1/7/04)Dr100ShareCapitalDr150SharesinSLtdCr250At30/6/06:RetainedProfits(1/7/05)Dr100ShareCapitalDr150SharesinSLtdCr250Needstoberepeatedineachyearsworksheet,31,Dividendsfrompre-acquisitionequity,Dividendspaidbyasubsidiaryoutofpre-acquisitionprofitsi.e.fromthebalanceofretainedearningsexistingattheacquisitiondatearenottreatedasrevenuebytheparentcompanybutasareductionofthecarryingamountof“SharesinSLtd”.NB.PLtdwillneverpayadividendtoSLtd.Why?,32,Dividendsfrompre-acquisitionequity,Beforedoingthesubstitutioneliminationentryweneedtodetermineif“SharesinS”hasbeenwrittendownbytheamountofapre-acquisitiondividendpaidbyStoP.Comparethecarryingamountof“SharesinS”withthepurchasepricepaidbyP.If“SharesinS”hasbeenwrittendownwemustreversethiswrite-downandbring“SharesinS”backtotheoriginalcost.,33,Dividendsfrompre-acquisitionequity,InthebooksofStheneteffectofdeclaringandpayingadividendfrompre-acquisitionprofitsis:DrRetainedearningsxxxCrBankxxxInthebooksofPtheneteffectofreceivingthisdividendis:DrBankxxxCrSharesinSxxx,34,Dividendsfrompre-acquisitionequity,WhydoesntPcreditarevenueaccountwiththeamountofthedividend?BecausePwilltreatthedividendasapartialreturnofthepurchasepriceitpaidforitsasset“SharesinS”.Toreversetheeffectofthistransaction:DrSharesinSxxxCrRetainedprofits(opening)xxx(ifdividendwaspaidinapreviousperiod),35,Dividendsfrompre-acquisitionequity,Ifthedividendwasdeclaredandpaidinthecurrentperiod:DrSharesInSxxxCrInterimdividendpaid*xxx*anegativeappropriationaccount,36,Dividendsfrompre-acquisitionequity,Powns100%ofS.On1June,Sdeclaresafinaldividendof$30whichwillbepaidinAugust.Thisisrecorded:InSLtdsrecords:DrFinaldividendprovided30CrDividendpayable30InPLtdsrecords:DrDividendreceivable30CrSharesinSLtd30,37,Dividendsfrompre-acquisitionequity,Toreversetheseentriesatdateofconsolidation:DrSharesinS30CrDividendreceivable30DrDividendpayable30CrFinaldividendprovided30,38,Goodwill,“Goodwillonconsolidation”ariseswhenthecostoftheinvestmentinasubsidiaryisgreaterthanthetotalfairvalu