Unrealized profit- Sale of goods by ABC PLC (This adjustment is indicated as F)
Sales
125
1,000,000
Cost of sales
100
800,000
Profit
25
200,000
Unrealized Profit
200,000*1/2
100,000
Unrealized profit- Sale of goods by XYZ PLC (This adjustment is indicated as G)
Sales
100
1,500,000
Cost of sales
75
1,125,000
Profit
25
375,000
Unrealized Profit
375,000*1/3
125,000
Unrealized profit- Sale of motor vehicle by XYZ PLC (This adjustment is indicated as H)
Carrying amount at reporting date
450,000
Carrying amount at reporting date if the intra
group transaction had not been occurred
(350,000)
Unrealized profit
100,000
Current account (This adjustment is indicated as I)
Adjust cash account by adding Rs.200,000 and adjust receivables by deducting Rs.200,000. Then
eliminate the receivables and payables against each other.
Dividends No adjustments are required for dividends
Goodwill impairment (This adjustment is indicated as J)
This must be adjusted to the parent’s retained earnings.
(d)
Non-Controlling Interest (NCI) in the net assets of consolidated subsidiaries should be presented
separately under the equity in the consolidated statement of financial position
(The NCI at the date of acquisition is indicated as C and Post acquisition Share of NCI is indicated
as E )
13
The amount of net assets attributable to non-controlling interests is calculated as follows.
