高级财务会计（英文版第13版）课件 第10章 子公司优先股、合并每股收益以及合并所得税

AdvancedAccountingThirteenthEditionChapter10SubsidiaryPreferredStock,Consolidated

EarningsperShare,andConsolidatedIncomeTaxationCopyright©2018,2015,2012PearsonEducation,Inc.AllRightsReservedSubsidiaryPreferredStock,ConsolidatedEPS,andConsolidatedIncomeTaxation:Objectives10.1

Modifyconsolidationproceduresforsubsidiarieswithoutstandingpreferredstock.10.2Calculatebasicanddilutedearningspershareforaconsolidatedentity.10.3

Understandthecomplexitiesofaccountingforincometaxesbyconsolidatedentities.PreferredStockSubsidiaryPreferredStock,ConsolidatedEarningsperShare,andConsolidatedIncomeTaxationSubsidiaryPreferredStockSubsidiarypreferredstockDoesn'tchangeconsolidationinprincipleDoesimpactcalculationsCommonstockholders'equity=totalequitylesspreferredstockatbookvalueIncomeofsubsidiaryisfirstallocatedtopreferredshareholders,thenCIandNCI.Subsidiarydividendpaymentsmustconsiderpaymentstopreferredshareholdersbeforecommonshareholders.WhoHoldsPreferredStock?PreferredstockisheldbyoutsidersPreferredstockisanoncontrollinginterestPreferredstockisheldbyparentMaychoosebetween:ConstructiveretirementCostbasisReviewofPreferredStockCharacteristicsCallable,redeemableCumulativeornoncumulativeParticipativeornon-participativeLimitedvotingrightsMostiscumulativeandnonparticipatingBookValueofPSis:Callorredemptionprice(parvalueifneither)PlusDividendsinarrears(ifcumulative)IncomeallocatedtoPSis:Currentperioddividendirrespectiveofamountdeclared,ifcumulativeDeclaredamountifnoncumulativePotentiallymoreifparticipativePreferredstockdividendis:FacevaluexdividendrateAlsoconsider:ArrearageParticipationExample:PSHeldbyOutsidersPopbuys90%ofSonfor$396whenSon'sequityconsistsof$100preferredstock,$200commonstock,$40otherpaidincapitaland$160retainedearnings.Thepreferredstockiscumulative,nonparticipating,carriesa10%dividendandiscallableat105%ofparvalue.Thereisnoarrearage.Duringtheyear,Sonearns$50andpays$30individends.CalculationsforPreferredStockCostof90%ofSon

blank$396ImpliedvalueofSon

blank$440Son'stotalequity $500

blankLessbookvalueofpreferredstock(105)

blankBookvalueofcommon

blank395Excess,goodwill

blank$45Thebookvalueofpreferredisitscallprice

(noarrearage),105%x$100PSparvalue.Dividendsarecumulative,sothecurrentdividendis$10=10%

x$100PSparvalue.AllocationsIncomeallocationblank

Son'snetincome$50Amortizations0Incometoallocate50Allocatedtopreferred(10)Allocatedtocommon$40blank

blank

Dividends$30Allocatedtopreferred(10)Allocatedtocommon$20NCIshare–(preferred)$10income$10dividendNCIshare(10%common)CIshare(90%)$36income$18dividend$4income$2dividend$10income$10dividendWorksheetEntrieswithPreferredStockHeldbyOutsidersIncomefromSon(-R,-SE)36

blankDividends(+SE)

blank18InvestmentinSon(-A)

blank18Noncontrollinginterestshare,CS(-SE)4

blankDividends(+SE)

blank2Noncontrollinginterest,CS(+SE)

blank2Noncontrollinginterestshare,PS(-SE)10

blank

Dividends(+SE)

blank10PreferredStock(-SE)100

blankRetainedearnings(-SE)5

blankNoncontrollinginterests,PS(+SE)

blank105Commonstock(-SE)200

blankOtherpaidincapital(-SE)40

blankRetainedearnings(-SE)155

blankGoodwill(+A)45

blankInvestmentinSon(-A)

blank396Noncontrollinginterest,CS(+SE)

blank44ThereisanentryforNCIshare,PSthatparallelstheentryforNCIshare,CS.PreferredStockiseliminated.ParentUsesConstructiveRetirementParentacquiressubsidiary'spreferredstockInvestmentinsubsidiary,PSisrecordedatitsbookvalueAnydifferencebetweenbookvalueandcostofthestockisanadjustmentofotherpaidincapital.Thisisanownertransaction;nogainorlossisrecorded.InvestmentiscarriedatthebookvalueofthePSIncreasefordividendsinarrearsDecreaselaterwhendeclaredParentUsesCostBasisParentacquiressubsidiary'spreferredstockUsecostmethodInvestmentinsubsidiary,PSisatcostDividendsarerecordedasincome.IntheconsolidationprocessPreferredstockiseliminatedatitsbookvalue.Noncontrollinginterest,PSisrecordedatbookvalueofthepreferredstockheldbyothersInvestmentisremovedatitscostandanydifferencefrombookvalueischargedorcreditedtootherpaidincapital.Example:ParentAcquiresPreferredStockPopowns90%ofSonacquiredatfairvalueplusimpliedgoodwillof$45.On1/1/17Popacquires80%ofSon'soutstandingpreferredstockfor$80.Son'sequityat1/1/17:$10Preferredstock,$100par,callableat$105,cumulative,1yearinarrears$100Commonstock$10par200Otherpaid-incapital40Retainedearnings140Totalequity$480Calculationsat1/1/17Bookvalueofpreferredstock($105callprice+$10arrearage)x($100totalPS/$100par)shares=$115BookvalueofSon'scommonstock$480totalequity–$115=$365Son'stotalvaluewithgoodwill$480totalequity+$45goodwill=$525InvestmentinSon,CS(90%)=$369Noncontrollinginterest,CS(10%)=$41Noncontrollinginterest,PS(20%)=$115AcquisitionofPreferredStockbyPopPopacquires80%ofSon'sPSfor$80on1/1/17.Popmayusetheconstructiveretirementorcostbasis.InvestmentinSon,PS(atbookvalue)80%x115=$92OrInvestmentinSon,PS(atcost)=$80Thedifference,$12=$92-$80,increasestheparent'sotherpaid-incapitalfortheconstructiveretirementmethod.Son’s2017IncomeandDividendsFor2017,Sonhad$20inincomeandpaidnodividends.BlankTotalsCINCISon’snetincome$20BlankBlankAllocatedtopreferredshareholders(10)$8$2Tocommonshareholders$10$9$1ConstructiveRetirementEntries(1of2)POP'SACQUISITIONENTRY1/1/17blankblankInvestmentinSon,preferred(+A)92blankCash(-A)blank80Otherpaid-incapital(+SE)blank12CONSOLIDATIONWORKSHEETENTRY12/31/17blankblankIncomefromSon,preferred(-R,-SE)8blankInvestmentinSon,preferred(+SE)blank8NCIshare,preferred(-SE)2blankNCI,preferred(+SE)blank2IncomefromSon,common(-R,-SE)9blankInvestmentinSon,commonblank9ConstructiveRetirementEntries(2of2)NCIshare,common(-SE)1blankNCI,common(+SE)blank1Preferredstock(-SE)100blankRetainedearnings(-SE)15blankInvestmentinSon,preferred(+SE)blank92NCI,preferred(+SE)(20%x115)blank23Commonstock(-SE)200blankOtherpaidincapital(-SE)40blankRetainedearnings(-SE)125blankGoodwill(+A)45blankInvestmentinSon,common(-A)blank369Noncontrollinginterest,common(20%)blank41CostBasisEntries(1of2)

PARENT'SACQUISITIONENTRY1/1/17blankblankInvestmentinSon,preferred(+A)80blankCash(-A)blank80CONSOLIDATIONWORKSHEETENTRIES12/31/17blankblankIncomefromSon,preferred(-R,-SE)8blankInvestmentinSon,preferred(-A)blank8NCIshare,preferred(-SE)2blankNCI,preferred(+SE)blank2IncomefromSon,common(-R,-SE)9blankInvestmentinSon,common(-A)blank9NCIshare,common(-SE)1blankNCI,common(+SE)blank1CostBasisEntries(2of2)Preferredstock(-SE)100blankRetainedearnings(-SE)15blankInvestmentinSon,preferred(-A)blank80Otherpaid-incapital(+SE)blank12NCI,preferred(+SE)blank23Commonstock(-SE)200blankOtherpaidincapital(-SE)40blankRetainedearnings(-SE)125blankGoodwill45blankInvestmentinSon,common(-A)blank369Noncontrollinginterest,common(+SE)blank41ComparisonofMethodsBothresultinthesameconsolidatedamounts.ConstructiveretirementRecordstheOtherpaidincapital(parent's)atacquisitionInvestmentisatbookvalue.Simplifiesconsolidationprocess!CostbasisRecordstheOtherpaidincapital(parent's)aspartoftheconsolidationprocessInvestmentisatcost.EarningsPerShareSubsidiaryPreferredStock,ConsolidatedEarningsPerShare,andConsolidatedIncomeTaxationEPSRequirementsGAAPrequiresfirmsreportbasicanddiluted(whereapplicable)EPSEPSisdisclosedonaconsolidatedbasis.Mainissue:Subsidiary'scapitalstructureSubsidiarypotentiallydilutivesecuritiesconvertibleintosubsidiarycommonstockSubsidiarypotentiallydilutivesecuritiesconvertibleintoparentcommonstockReviewBasicEPSNumerator:Netincome–preferredstockdividends**currentdividendsifcumulative,otherwisedeclareddividendsDenominator:WeightedaveragesharesofcommonstockReviewDilutedEPSNumerator:(Netincome–PSdividends)+adjustmentsfordilutivesecuritiesDenominator:Weightedaveragesharesoutstanding+sharesrepresentedbydilutivesecuritiesDilution:DilutivesecuritiesreduceEPS.Non-dilutivesecuritiesareexcluded.EffectofDilutiveSecuritiesonEPSBondspayableconvertibleintocommonNumerator:after-taxinterestexpenseDenominator:commonsharesbondsrepresentPreferredstockconvertibleintocommonNumerator:preferredstockdividendDenominator:commonsharesthepreferredsharesrepresentOptionsorwarrantsforcommonstockNumerator:noneDenominator:"treasurystockmethod"tocomputeshares(onlyifpositive,i.e.,dilutive)#shares–(#sharesxoptionprice/averagemarketprice)SubsidiarySecuritiesConvertibleintoSubsidiaryCommonStock(1of2)CompareParent'sequityRealizedearningsofsubsidiaryDilutedearningsofsubsidiaryIfdilutedishigher,skip➔Non-dilutiveRealizedearnings:Parent’sshareofsubsidiary'snetincomeadjustedforintercompanyprofits/lossesandconstructivegains/lossesDoesnotincludeamortizationsofvaluationdifferentialsSubsidiarySecuritiesConvertibleintoSubsidiaryCommonStock(2of2)Dilutedearnings:Subsidiary'sdilutedEPSxsharesheldbyparentParent'sdilutedEPSNumerator:ReducebydifferenceDenominator:Noeffect–noparentshares!SubsidiaryPSConvertibleinto

SubsidiaryCSSonhas$50netincomeand20weightedaveragesharesofcommonstock.Itspreferredstockhasa$10dividendandisconvertibleinto12sharesofSoncommonstock.Son'sbasicEPS:($50-$10)/20=$2.00Son'sdilutedEPS:($50-$10)+$10=$1.562520+12Parent'sBasicEPSSonis90%ownedbyPop.Pop'sseparateincomeis$150.Pophas200sharesofcommonoutstandingallyearandnodilutivesecurities.Pop’snetincomeSeparateincome $150IncomefromSon90%(50-10)

36Pop’snetincome $186Pop'sbasicEPS:$186/200=$0.93Parent'sDilutedEPS(1of3)Pop'srealizedincomefromSon:90%x$40=$36Pop'sshareofSon'sdilutedearnings:90%x20sharesx$1.5625=$28.125Sincetheshareofdilutedearningsislower,wewillreducethenumeratorbythedifference.Pop'sdilutedEPS:$186–36+28.125=$0.89

200SubsidiarySecuritiesConvertibleintoParentCommonStock(1of2)Parent'sdilutedEPScalculation:Numerator:AddadjustmentsforsubsidiarysecuritiesconvertibleintoparentcommonstockPreferredstockdividendsforsharesassumedconvertedAfter-taxinterestonbondsassumedconvertedSubsidiarySecuritiesConvertibleintoParentCommonStock(2of2)Denominator:Addparentcommonsharesrepresentedbysubsidiary'sdilutivesecuritiesParentcommonsharestobeissuedforsubsidiarypreferredstockorbondsParentcommonsharesassumedissuedforoptionsorwarrants(treasurystockmethod)Parent'sDilutedEPS(2of3)Usethesameassumptionsanddataasbefore,exceptthatSon’spreferredstockisconvertibleinto24sharesofPop’scommonstock.Son’spreferredstockdividendsonsharesassumedtobeconvertedbyPopis(90%x$10preferredstockdividend)=$9Pop'sdilutedEPS:$186+9=$0.87 200+24SubsidiaryOptionsandBondsConvertibleintoParentCSSyd'snetincomeis$450andithas400sharesofcommonoutstandingallyear.Options:Sydhasissuedoptionsfor60sharesofitsparent's(Pad)commonstockat$10pershare.Theaveragemarketpriceis$15.Convertiblebonds:Sydhas$1,000parbondsconvertibleinto80sharesofPad'scommonstock.Thebondswereissuedatpartoyield7%.Theeffectivetaxrateis34%.Parent'sDataandBasicEPSPadhas$1,800income(including$300fromSyd)and1,000sharesofcommonstockoutstandingallyear.Ithasnopreferredstockordilutivesecurities.Pad'sbasicEPS:$1,800/1,000shares=$1.80Parent'sDilutedEPS(3of3)ImpactofSyd'soptionsforPadcommon:Numerator:noneDenominator:60-(60x$10/$15)=20sharesImpactofSyd'sbondsconvertibletoPadcommon:Numerator:7%x$1,000x(1-34%)=$46.2Denominator:80sharesPad'sdilutedEPS:$1,800+0+$46.2=$1.68 1,000+20+80IncomeTaxesSubsidiaryPreferredStock,ConsolidatedEarningsPerShare,andConsolidatedIncomeTaxationConsolidatedTaxReturn(1of2)AdvantagesOffsetaffiliatelosses(excludingpreacquisitionlosscarryforwards)Exclude100%ofintercompanydividendsDeferintercompanyprofitsuntilrealized(lossesarealsodeferred)DisadvantagesLossofflexibilityfromfilingseparatereturnsDifficulttoswitchbacktounconsolidatedCannotfileasconsolidatedagainfor5yearsIncomeTaxAllocationPermanentdifferencesDividendsfromaffiliatesareexcludedfromtaxableincome.Dividendsfromaffiliatesthatarenotmembersoftheaffiliatedgroupareallowedan80%dividendsreceiveddeductionTemporarydifferenceUndistributedincomefromdomesticaffiliates[FASBASC740-10-05]ExceptionforundistributedearningsofforeignsubsidiariesandforeignjointventuresUndistributedEarningsPopowns30%ofSon'scommonstock.Son'sincome,$1,200Son'sdividends,$400Pop'sapplicabletaxrate=34%Filingseparatereturns,Pop'sdeferredtaxliability=[30%($1,200-$400)]x20%x34%=$8.16Son'searningsareallowedthe80%deduction,soonly20%issubjecttotax.Filingaconsolidatedreturn,Son’searningswouldbeexcludedandPopwouldhavenodeferredtaxliability.UnrealizedGainsandLossesSeparatetaxreturnsUnrealizedgains(losses)aretaxed(deducted)intheseparatereturns.ConsolidationproceduresRemovetheunrealizedgain(loss)Recordadeferredtaxasset(liability)Taxeffectimpactstheincometaxexpenseofthesellingaffiliate.ConsolidatedtaxreturnUnrealizedgains(losses)areexcluded.ExamplePalowns90%ofSal.Thetaxrateis34%.PretaxoperatingincomeofPalandSalare$150and$50.Salpaiddividendsof$20,andSal'sdividendsaresubjecttothe100%exclusion.Duringtheyear,intercompanysaleswere$40,andthereremains$10inunrealizedprofitsinendinginventory.ConsolidatedTaxReturn(2of2)DownstreamsalesPal'sincome$150-$10unrealizedgain=$140Sal'sincome$50Consolidatedtaxes($140+$50)x34%=$64.6Allocate (140/(140+50))x$64.6=$47.6toPal (50/(140+50))x$64.6=$17.0toSalUpstreamsalesPal'sincome$150Sal'sincome$50-$10=$40Consolidatedtaxes($150+$40)x34%=$64.6Allocate(150/(150+40))x$64.6=$51.0toPal(40/(150+40))x$64.6=$13.6t