The financial statements of P Co, Y Co, Z Co, and W Co for the year ended
Question:
The financial statements of P Co, Y Co, Z Co, and W Co for the year ended 31 December 20x5 are shown below:
Additional information
(a) Amortization of fair value adjustments:
(i) Undervalued inventory at date of acquisition was disposed of in January 20x4.
(ii) The intangible asset had a useful life of five years from acquisition date.
(b) Z Co transferred its fixed asset to P Co on 1 July 20x5. Details are as follows:
(c) Other transactions were as follows:
(d) Sale of inventory from P Co to Y Co in 20x5:
(e) Assume a tax rate of 20%. Recognize tax effects on fair value adjustments.
Required
1. Prepare the consolidation and equity accounting entries for 20x5.
2. Prepare the consolidation worksheet.
3. Perform an analytical check on the year-end balances of non-controlling interests in Y and W and the Investment in Z.
Step by Step Answer:
Advanced Financial Accounting An IFRS Standards Approach
ISBN: 9781285428765
4th Edition
Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah