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Dr Marcin Jędrzejczyk

Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

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Page 1: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

Dr Marcin Jędrzejczyk

Page 2: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

Consolidated accounts – an overview

GROUP FINANCIAL STATEMENTS

JOINTLY CONTROLLED ENTITY

ASSOCIATE SUBSIDIARY

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Page 3: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

Consolidated accounts – an overview

ASSOCIATE JOINTLY CONTROLLED ENTITY

SUBSIDIARY

Features Significant influence over the financial and operating policy decisions

Joint control over the financial and operating policy decisions

Control – power to govern the financial and operating policies

Accounting treatment

Equity method (IAS 28), share of net assets and profits

Proportionate consolidation (benchmark) or equity method (IAS 31)

IAS 22, IAS 27

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Page 4: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

Acquisition Method (1)

Parent Company has purchased 100% of Shares for 100 000 zl in Subsidiary Company. Net Assets Value equals 85000 zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method.

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Page 5: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

Acquisition Method (2)

Parent Company has purchased 80% of Shares for 100 000 zl in Subsidiary Company. Net Assets Value equals 85000 zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method.

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Page 6: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

 Parent Company (P)

(in zł)Subsidiary (S)

(in zł)

   ASSETSGoodwill

Property Plant and Equipment 1 300 000 60 000

Investment in S 100 000Long term receivables 14 000

Inventories 300 000 30 000Receivables 130 000 10 000

Cash 150 000 10 000Other Commodities 20 000 5 000

TOTAL ASSTES 2 000 000 129 000LIABILITIES + OE    

Owners EquityShare Capital 1 100 000 60 000

Supplementary Capital 180 000 20 000Profit/loss 20 000 5 000

Reserves 100 000Long-term liablities 420 000 34 000

Liabilities 180 000 10 000TOTAL LIAB. + OE 2 000 000 129 000

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Page 7: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

Proportionate Method

Parent Company has purchased 80% of Shares for 80 000 zl in JCE Company. Net Assets Value equals 85000 zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the proportionate consolidation.

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Page 8: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

 Parent Company (P)

(in zł)JCE (JCE)

(in $)

   ASSETSGoodwill

Property Plant and Equipment 1 300 000 60 000

Investment in S 80 000Long term receivables 14 000

Inventories 300 000 30 000Receivables 150 000 10 000

Cash 150 000 10 000Other Commodities 20 000 5 000

TOTAL ASSTES 2 000 000 129 000LIABILITIES + OE    

Owners EquityShare Capital 1 100 000 60 000

Supplementary Capital 180 000 20 000Profit/loss 20 000 5 000

Reserves 100 000Long-term liablities 420 000 34 000

Liabilities 180 000 10 000TOTAL LIAB. + OE 2 000 000 129 000

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Page 9: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

Uniting of Interest Method Company P has purchased 80% of

Shares for 80 000 zl in Associate Company. Net Assets Value equals 60000 zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the Uniting of Interest Method.

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Page 10: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

 Parent Company (P)

(in zł)

 ASSETSGoodwill

Property Plant and Equipment 1 300 000

Investment in S 80 000Long term receivables

Inventories 300 000Receivables 150 000

Cash 150 000Other Commodities 20 000

TOTAL ASSTES 2 000 000LIABILITIES + OE  

Owners EquityShare Capital 1 100 000

Supplementary Capital 180 000Profit/loss 20 000

Reserves 100 000Long-term liablities 420 000

Liabilities 180 000TOTAL LIAB. + OE 2 000 000

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Page 11: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

Acquisition Method (1)

Parent Company has purchased 100% of Shares for 1 000 000 zl in Subsidiary Company. Net Assets Value equals $85000 at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method. Exchange rate equals 3,5 zł/$.

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Page 12: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

Acquisition Method (2)

Parent Company has purchased 80% of Shares for 1 000 000 zl in Subsidiary Company. Net Assets Value equals $85000 at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method. Exchange rate ewuals 3,5 zł/$.

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Page 13: Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

 Parent Company (P)

(in zł)Subsidiary (S)

(in USD)

   ASSETSGoodwill

Property Plant and Equipment 1 300 000 60 000

Investment in S 1 000 000Long term receivables 14 000

Inventories 300 000 30 000Receivables 130 000 10 000

Cash 150 000 10 000Other Commodities 20 000 5 000

TOTAL ASSTES 2 900 000 129 000LIABILITIES + OE    

Owners EquityShare Capital 1 100 000 60 000

Supplementary Capital 180 000 20 000Profit/loss 20 000 5 000

Reserves 100 000Long-term liablities 420 000 34 000

Liabilities 1 080 000 10 000TOTAL LIAB. + OE 2 900 000 129 000

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