Professional Documents
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SS 60%
OR
H
Direct Control 80% 30% Direct Control
S
60%
SS
Indirect Control
2ND STEP Equity Table S OSC PSC Debentures OSC - Direct Indirect H 80% 60% 40% 40% 78% NCI 20% 40% 60% 22%
SS
3RD STEP CALCULATE GOODWILL Goodwill S Consideration Transfer - Direct Cash Equity Transfer Contingent Consideration Contingent Liabilities Consideration Transfer - Indirect XXX XXX XXX XXX Goodwill SS
XXX ZZZ
NCI FV
XXX (SS NCI 22% x SS OSC x FV) Or if given just take the value XXX OR If NCI not at FV Equivalent to proportionate of FV of net asset NCI (S NCI 20% x TTTT) XXX (SS NCI 22% x UUUU) Shareholder Fund Transfer (note 2) OSC RP General Reserve FV Adj Surplus Less: Deferred tax Deficit Goodwill/ (Bargain Purchase) Impairment Transfer to CSOFP
XXX
XXX XXX
Note 1 Eliminating Investment in SS Paid by S Dr Goodwill (YYY x 80%) Dr NCI (YYY x 20%) Cr Investment in SS In the book of S
Note 2 Shareholder Fund Transfer only involved OSC and balance of reserve on the date of acquisition. Identify the date of acquisition (DOA) of SS.
H Bhd S SS
S Acquire SS after the date of H acquires S H Acquire S 1/1/2010 S Acquire SS 1/1/2012 DOA of SS 1/1/2012
S Acquire SS beforethe date of H acquires S H Acquire S 1/1/2012 S Acquire SS 1/1/2010 DOA of SS 1/1/2012
Fair Value adjustment only effect goodwill if the revaluation occurred within 12 month from the DOA
4th STEP CALCULATE NCI AND GROUP RETAIN PROFIT NCI @ Acquisition Date S SS Preference Share (S PSC x PSC NCI 40%) Impairment of Goodwill ARR (revaluation after 12 month (NCI % x XXX) NCI XXXX XXXX XXX (XXX) If full goodwill XXX GRP
(XXX)
Retained Profit S Bal c/d -pre (always follow goodwill balance) Post Over amortization TA URP Depreciable asset (XXX-XXX) Over Dep. (above asset )(XX/Xyrs) Div. Payable (only if S still not record) Div Receivable from SS (only if S still not record) Retained Profit SS Bal c/d -pre (always follow goodwill balance) Post Under Dep. Surplus on rev (XX/Xyrs) x yrs (from DOA till current year) Over Dep. Deficit on rev (XX/Xyrs) x yrs (from DOA till current year) Div. Payable (only if SS still not record)
XXX (XXX) XXX XXX (XX) XX (XX) XXX AAA XXX (XXX) XXX (XX) XX (XX) BBB
(AAAx20%)
(AAAx80%)
XXX
XXX
(BBBx22%)
(BBBx78%)
XXX
XXX
Retained profit H Bal c/ URP Non depreciable asset Div. Payable (only if SS still not record) Div Receivable from SS and S (only if H still not record) URL Depreciable asset (XXX-XXX) Under Dep. (above asset )(XX/Xyrs) Finance Cost Transfer to CSOFP CCCC
FOR OTHER POST ACQUISITION RESERVE (IF NECESSARY) NCI General Reserve S Bal c/d XXX GGR
(EEEx20%)
(EEEx80%)
XXX
XXX
General Reserve SS Bal c/d -pre (always follow goodwill balance) Post Adjustment
(FFFx22%)
(FFFx78%)
XXX
XXX
General Reserve H Bal c/d Transfer to CSOFP 5th STEP PREPARE CSOFP GGG
XXX HHH
Consolidated Statement of Financial Position for Ha Bhd Group as at 31 December 2011. Non-current assets Property, plant and equipment (H+S+SS) + surplus on rev defisit on rev URP + URL under depreciation + over depreciation Intangible assets (H+S+SS) Goodwill on Consolidation (follow goodwill (Step 3)) Current assets Inventories (H+S+SS) -URP Trade receivables (H+S+SS)-inter co. balance Bills receivable (H+S+SS)-inter co. balance Cash at bank and in hand (H+S+SS) Good/cash in transit
Financed by: Ordinary shares of RM1 each (H only) 8% Preference Share of RM1 each (H only) Share Premium Group retained Profit(as step 4) Group General Reserve(as step 4) Asset Revaluation Reserve (xxx x H %) Non Controlling Interest (as step 4) GGG+CCC Non-current liabilities 8% Debentures (H+S+SS) H acquistion
XXX
Current liabilities Trade payables (H+S+SS)-inter co. balance Bills (H+S+SS)-inter co. balance Deferred Payment Deferred tax Tax payable Ordinary Dividend Payable - Holding NCI Preference Dividend Payable - Holding NCI Debenture Interest (H+S+SS) H interest)
XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXXX
ADDITIONAL INFORMATION Assuming bonus issues(BI) - post-acquisition general reserves for the. Goodwill S Consideration Transfer - Direct Cash Equity Transfer Contingent Consideration Contingent Liabilities Consideration Transfer - Indirect NCI FV (S NCI 20% x S OSC x FV) Or if given just take the value XXX XXX XXX XXX
XXX
XXX
XXX OR If NCI not at FV Equivalent to proportionate of FV of net asset NCI (S NCI 20% x( TTTT- vvv)) XXX Shareholder Fund Transfer OSC + Bonus Issue RP General Reserve FV Adj Surplus Less: Deferred tax Deficit Goodwill + adjustment on BI Impairment Transfer to CSOFP
Schedule NCI XXXX XXXX XXX (XXX) If full goodwill XXX XXX GRP
NCI @ Acquisition Date S SS Preference Share (S PSC x PSC NCI 40%) Impairment of Goodwill ARR (revaluation after 12 month Adjustment on bonus issue (note 3) (NCI % x XXX) (NCI % x VVV)
(XXX)
Dr goodwill Cr Cr
NCI General Reserve S Bal b/d -pre Post - Bonus Issue XXX (XXX) XXX (VVV) XXX
GGR
XXX
XXX
Assuming ADDITIONAL INFORMATION Assuming bonus issues(BI) - pre-acquisition general reserves for the. Goodwill S Consideration Transfer - Direct Cash Equity Transfer Contingent Consideration Contingent Liabilities Consideration Transfer - Indirect NCI FV (S NCI 20% x S OSC x FV) Or if given just take the value XXX XXX XXX XXX
XXX
XXX
XXX OR If NCI not at FV Equivalent to proportionate of FV of net asset NCI (S NCI 20% x( TTTT) XXX
Shareholder Fund Transfer OSC + Bonus Issue RP General Reserve (XXX vvv) FV Adj Surplus Less: Deferred tax Deficit Goodwill Impairment Transfer to CSOFP