Tutorial Week 8 Moodle Questions and Solutions

Chapter 18: CFS: Non-controlling interest

REVIEW QUESTIONS

1.

What is meant by the term non-controlling interest (NCI)?

NCI is the term used for the ownership interest in a subsidiary other than the parent.
It is defined in AASB 127 as:
The equity in a subsidiary not attributable, directly or indirectly, to a parent.

3. Explain whether the NCI is entitled to a share of subsidiary equity or some other
amount.
If the NCI is classified as equity, it is entitled to a share of consolidated equity. Note
that consolidated equity is basically subsidiary equity adjusted for the effects of
intragroup transactions that is, realised subsidiary equity.
If it were classified as a liability of the subsidiary then the calculation of the NCI would
be based on the obligation held by the subsidiary.

6. Why is it necessary to change the format of the worksheet where a NCI exists in the
group?
The AASB require the disclosure of the equity of the group, as well as the relative
proportions of the parent and the subsidiary. For a wholly owned subsidiary situation,
the final column in the worksheet represents the group position which is also the
parents position, as there is no NCI. Where an NCI exists, having determined the
group position, the equity must be divided into parent share and the NCI share. Hence,
the worksheet must have additional columns to divide the group equity into the relative
shares of the parent and the NCI. This is done by calculating the NCI share and
subtracting it from the group equity so that the final column is then the parent entitys
share.

Tutorial Week 8 Moodle Questions and Solutions

7.

Explain how the adjustment for intragroup transactions affects the calculation of
the NCI share of equity.
The NCI does not affect the adjustment itself, as the full effects of the intragroup
transaction are adjusted for on consolidation. However, where the subsidiary records
profit which is unrealised to the group, this affects the calculation of the NCI. The NCI
is entitled only to a share of consolidated equity rather than subsidiary equity. Hence,
where the subsidiary has recorded unrealised profit, the NCI share of the recorded profit
of the group must be adjusted for any of that profit which is unrealised. In the Step 2 &
Step 3 calculations of the NCI share of equity, this is a share of recorded equity. As
adjustments are made for intragroup transactions, where these transactions reflect
adjustments for unrealised subsidiary profit, an adjustment is also made to the NCI
share of profit. The net result is then that the NCI gets a share of realised subsidiary
equity.

8.

Explain whether an NCI adjustment needs to be made for all intragroup

transactions.
An NCI adjustment does NOT need to be made for all intragroup transactions.
An NCI adjustment only needs to be made where the adjustment is for unrealised profit
recorded by the subsidiary. Hence the transaction must be an upstream subsidiary to
parent transaction in order for an NCI adjustment to be made. Further the upstream
transaction must relate to unrealised subsidiary profit.

Tutorial Week 8 Moodle Questions and Solutions

PRACTICE QUESTIONS
QUESTION 18.2
NORILSK LTD RUDNY LTD

90%
Norilsk Ltd

Rudny Ltd
Norilsk Ltd 90%
NCI
10%

At 1 July 2012:
Net fair value of identifiable assets
and liabilities of Rudny Ltd
=

(a) Consideration transferred

(b) Non-controlling interest
Aggregate of (a) and (b)
Goodwill of the parent

=
=
=
=
=
=
=

$200 000 + $80 000 (equity)

+ $10 000 (1 30%) (land)
+ $2 000 (1 30%) (inventory)
+ $20 000 (1 30%) (machinery)
$302 400
$290 160
10% x $302 400
$30 240
$320 400
$320 400 - $302 400
$18 000

A. Worksheet entries at 1 July 2012

1. Business combination valuation entries
Land

2.

Dr
Cr
Cr

10 000

Deferred tax liability

Business combination valuation reserve
Machinery
Deferred tax liability
Business combination valuation reserve

Dr
Cr
Cr

20 000

Inventory
Deferred Tax Liability
Business combination valuation reserve

Dr
Cr
Cr

2 000

Dr
Dr
Dr
Dr
Cr

180 000
72 000
20 160
18 000

Dr
Dr
Dr
Cr

20 000
8 000
2 240

3 000
7 000

6 000
14 000

600
1 400

Pre-acquisition entries
Share capital
Retained earnings (1/7/12)
Business combination valuation reserve
Goodwill
Shares in Rudny Ltd

290 160

3. NCI share of equity at 1 July 2012

Share capital
Retained earnings (1/7/09)
Business combination valuation reserve
NCI

30 240

Tutorial Week 8 Moodle Questions and Solutions

B.

Worksheet entries at 30 June 2013

1. Business combination valuation entries

Land

Dr
Cr
Cr

10 000

Deferred tax liability

Business combination valuation reserve

Machinery
Deferred tax liability
Business combination valuation reserve

Dr
Cr
Cr

20 000

Depreciation expense
Accumulated depreciation
(1/10 x $20 000)

Dr
Cr

2 000

Deferred tax liability

Income tax expense

Dr
Cr

600

Cost of sales
Income tax expense
Transfer from business combination
valuation reserve

Dr
Cr

2 000

3 000
7 000

6 000
14 000

2 000

600

600

Cr

1 400

2. Pre-acquisition entries
Retained earnings (1/7/12)
Share capital
Business combination valuation reserve
Goodwill
Shares in Rudny Ltd

Dr
Dr
Dr
Dr
Cr

72 000
180 000
20 160
18 000

Transfer from business combination

valuation reserve
Business combination valuation reserve

Dr
Cr

1 260

Dr
Dr
Dr
Cr

20 000
2 240
8 000

290 160

1 260

3. NCI share of equity at 1 July 2012

Share capital
Business combination valuation reserve
Retained earnings (1/7/12)
NCI

30 240

Tutorial Week 8 Moodle Questions and Solutions

4. NCI share of equity: 1/7/12 - 30/6/13
NCI share of profit
Dr
NCI
Cr
(10% ($20 000 ($2 000 - $600) ($2 000 $600)))
Transfer from business combination
valuation reserve
Business combination valuation reserve
(10% x $1 400)

Dr
Cr

1 720
1 720

140
140

C. FULL GOODWILL METHOD

NCI has fair value of $31 800
At 1 July 2012:
Net fair value of identifiable assets
and liabilities of Rudny Ltd
=

(a) Consideration transferred

(b) Non-controlling interest
Aggregate of (a) and (b)
Goodwill

=
=
=
=
=
=

Goodwill of Subsidiary
Fair value of Rudny Ltd

$200 000 + $80 000 (equity)

+ $10 000 (1 30%) (land)
+ $2 000 (1 30%) (inventory)
+ $20 000 (1 30%) (machinery)
$302 400
$290 160
$31 800
$321 960
$321 960 - $302 400
$19 560
=
=

$31 800/10%
$318 000

Net fair value of identifiable assets

and liabilities
Goodwill of subsidiary

=
=

$302 400
$15 600

Goodwill of parent
Goodwill acquired
Goodwill of subsidiary
Goodwill of parent (control premium)

=
=
=

$19 560
$15 600
$3 960

There will need to be an additional BCVR entry:

Goodwill
Business combination valuation entry

Dr
Cr

15 600

Dr
Dr
Dr
Dr
Cr

180 000
72 000
34 200
3 960

15 600

The pre-acquisition entry at 1 July 2012 would change to:

Share capital
Retained earnings (1/7/12)
Business combination valuation reserve *
Goodwill
Shares in Rudny Ltd
* 90% [$22 400 + $15 600]

290 160

Tutorial Week 8 Moodle Questions and Solutions

The Step 1 NCI would change to:
Share capital
Retained earnings (1/7/12)
Business combination valuation reserve *
NCI

Dr
Dr
Dr
Cr

20 000
8 000
3 800
31 800

* 10% [$22 400 + $15 600]

Tutorial Week 8 Moodle Questions and Solutions

QUESTION 18.4
DINGO LTD DUGONG LTD

75%
Dingo Ltd

Dugong Ltd
Dingo Ltd 75%
NCI
25%

Acquisition analysis
1 July 2009
Net fair value of identifiable assets
and liabilities of Dugong Ltd
=

(a) Consideration transferred

(b) Non-controlling interest
Aggregate of (a) and (b)
Goodwill parent only

=
=
=
=
=
=

($80 000 + $20 000 + $40 000) (equity)

+ $20 000 (1 30%) (land)
+ $6 000 (1 30%) (plant)
+ $4 000 (1 30%) (inventory)
$161 000
$125 750
25% x $161 000
$40 250
$166 000
$5 000

A. Consolidation Worksheet Entries - 1 July 2009

1. Business combination valuation entries
Accumulated depreciation - plant
Plant
Deferred tax liability
Business combination valuation reserve

Dr
Cr
Cr
Cr

15 000

Inventory
Deferred tax liability
Business combination valuation reserve

Dr
Cr
Cr

4 000

Dr
Dr
Dr
Dr
Dr
Dr
Cr

30 000
60 000
15 000
10 500
5 250
5 000

9 000
1 800
4 200

1 200
2 800

2. Pre-acquisition entries
Retained earnings (1/7/09)
Share capital
General reserve
Asset revaluation surplus
Business combination valuation reserve
Goodwill
Shares in Dugong Ltd

125 750

Tutorial Week 8 Moodle Questions and Solutions

3. NCI share of equity at 1 July 2009

Share capital
Retained earnings (1/7/09)
General reserve
Asset revaluation surplus
Business combination valuation reserve
NCI

B.

Dr
Dr
Dr
Dr
Dr
Cr

20 000
10 000
5 000
3 500
1 750

Accumulated depreciation - plant

Plant
Deferred tax liability
Business combination valuation reserve

Dr
Cr
Cr
Cr

15 000

Depreciation expense
Accumulated depreciation - plant
(1/3 x $6 000 p.a.)

Dr
Cr

2 000

Deferred tax liability

Income tax expense

Dr
Cr

600

Cost of sales
Income tax expense
Transfer from business combination
valuation reserve

Dr
Cr

4 000

40 250

Consolidation Worksheet Entries - 30 June 2010

1. Business combination valuation entries

9 000
1 800
4 200

2 000

600

1 200

Cr

2 800

2. Pre-acquisition entry
Retained earnings (1/7/09)
Share capital
General reserve
Asset revaluation surplus
Business combination valuation reserve
Goodwill
Shares in Dugong Ltd

Dr
Dr
Dr
Dr
Dr
Dr
Cr

30 000
60 000
15 000
10 500
5 250
5 000

Transfer from business combination

valuation reserve
Business combination valuation reserve
(75% x 70% x $4 000)

Dr
Cr

2 100

125 750

2 100

Tutorial Week 8 Moodle Questions and Solutions

3. NCI share of equity at 1 July 2009
Share capital
Retained earnings (1/7/09)
General reserve
Asset revaluation surplus
Business combination valuation reserve
NCI

Dr
Dr
Dr
Dr
Dr
Cr

20 000
10 000
5 000
3 500
1 750

NCI share of profit

Dr
NCI
Cr
(25% [$10 000 ($2 000 - $600) ($4 000 - $1 200)])

1 450

40 250

4. NCI share of equity: 1 July 2009 - 30 June 2010

Transfer from business combination

valuation reserve
Business combination valuation reserve
(25% x 70% x $4 000)

Dr
Cr

700

Dr
Cr

500

Accumulated depreciation - plant

Plant
Deferred tax liability
Business combination valuation reserve

Dr
Cr
Cr
Cr

15 000

Depreciation expense
Retained earnings (1/7/10)
Accumulated depreciation - plant

Dr
Dr
Cr

2 000
2 000

Deferred tax liability

Income tax expense
Retained earnings (1/7/10)

Dr
Cr
Cr

1 200

Asset revaluation surplus

NCI
(25% x $2 000)

C.

1 450

700

500

Consolidation Worksheet Entries - 30 June 2011

1. Business combination valuation entries

9 000
1 800
4 200

4 000

600
600

Tutorial Week 8 Moodle Questions and Solutions

2. Pre-acquisition entries
Retained earnings (1/7/10) *
Share capital
General reserve
Asset revaluation surplus (1/7/10)
Business combination valuation reserve
Goodwill
Shares in Dugong Ltd

Dr
Dr
Dr
Dr
Dr
Dr
Cr

32 100
60 000
15 000
10 500
3 150
5 000

Dr
Cr

10 500

Dr
Dr
Dr
Dr
Dr
Cr

20 000
10 000
5 000
3 500
1 750

Dr
Dr
Cr
Cr

2 150
500

NCI share of profit

NCI
(25% ($23 000 [$2 000 - $600])

Dr
Cr

5 400

Transfer from asset revaluation surplus

Asset revaluation surplus
(25% x 70% x $20 000)

Dr
Cr

3 500

Asset revaluation surplus

NCI
(25% x $5 000)

Dr
Cr

1 250

125 750

*RE: [$30 000 + $2 100 BCVR - inventory]

Transfer from asset revaluation surplus
Asset revaluation surplus
(75% x 70% x $20 000)

10 500

3. NCI share of equity at 1 July 2009

Share capital
Retained earnings (1/7/10)
General reserve
Asset revaluation surplus
Business combination valuation reserve
NCI

40 250

4. NCI share of equity: 1 July 2009 - 30 June 2010

Retained earnings (1/7/10)
Asset revaluation surplus
Business combination valuation reserve
NCI
(RE: 25% ($10 000 [$2 000 - $600])
ARS: 25% x $2 000
BCVR: 25% x 70% x $4 000)

700
1 950

5. NCI share of equity: 1 July 2010 - 30 June 2011

5 400

3 500

1 250

10

Tutorial Week 8 Moodle Questions and Solutions

D.

Consolidation Journal entries - 30 June 2012

1. Business combination valuation entries

Depreciation expense - plant
Income tax expense
Retained earnings (1/7/11)
Transfer from business combination
valuation reserve

Dr
Cr
Dr

2 000
600
2 800

Cr

4 200

2. Pre-acquisition entries
Retained earnings (1/7/11) *
Share capital
General reserve
Business combination valuation reserve
Goodwill
Shares in Dugong Ltd

Dr
Dr
Dr
Dr
Dr
Cr

42 600
60 000
15 000
3 150
5 000

Dr
Cr

3 150

Dr
Dr
Dr
Dr
Dr
Cr

20 000
10 000
5 000
3 500
1 750

Dr
Cr
Cr
Cr

7 550

125 750

* $30 000 + 70% x 75% ($20 000 + $4 000)

Transfer from business combination
valuation reserve
Business combination valuation reserve
(75% x 70% x $6 000)

3 150

3. NCI share of equity at 1 July 2009

Share capital
Retained earnings (1/7/11)
General reserve
Asset revaluation surplus
Business combination valuation reserve
NCI

40 250

4. NCI share of equity: 1 July 2009 - 30 June 2011

Retained earnings (1/7/11)
Asset revaluation surplus
Business combination valuation reserve
NCI
RE: 25% ($10 000 + $23 000 $2 800)
BCVR: 25% (70% x $4 000)
ARS: 25% ($2 000 + $5 000 - $14 000)

11

1 750
700
5 100

Tutorial Week 8 Moodle Questions and Solutions

5. NCI share of equity: 1 July 2011 - 30 June 2012
NCI
NCI share of profit/loss
(25% [(6 000) ($2 000 - $600)])
Transfer from business combination
valuation reserve
Business combination valuation reserve
(25% x 70% x $6 000)
Asset revaluation surplus
NCI
(25% x $7 000)
E.

Dr
Cr

1 850

Dr
Cr

1 050

Dr
Cr

1 750

Dr
Dr
Dr
Dr
Cr

45 750
60 000
15 000
5 000

1 850

1 050

1 750

Consolidation Journal Entries - 30 June 2013

1. Pre-acquisition entry
Retained earnings (1/7/12) *
Share capital
General reserve
Goodwill
Shares in Dugong Ltd

125 750

* [$30 000 + 75% x 70%($20 000 + $6 000 + $4 000)]

2. NCI share of equity at 1 July 2009
Share capital
Retained earnings (1/7/12)
General reserve
Asset revaluation surplus
Business combination valuation reserve
NCI

Dr
Dr
Dr
Dr
Dr
Cr

20 000
10 000
5 000
3 500
1 750

Dr
Cr
Cr

6 750

Dr
Cr

5 500

40 250

3. NCI share of equity: 1 July 2009 - 30 June 2012

Retained earnings (1/7/12)
Business combination valuation reserve
NCI
(RE: [25% ($10 000 + $23 000 - $6 000)]
ARS: 25% ($2 000 + $5 000 + $7 000 - $14 000)
BCVR: 25% x 70% x ($6 000 + $4 000)

1 750
5 000

5. NCI share of equity: 1 July 2012 - 30 June 2013

NCI share of profit
NCI
(25% x $22 000])

5 500

12

Tutorial Week 8 Moodle Questions and Solutions

QUESTION 18.5
ECHIDNA LTD - EMU LTD

75%
Echidna Ltd

Emu Ltd
Echidna Ltd 75%
NCI
25%

Acquisition analysis
At 1 July 2012:
Net fair value of identifiable assets
and liabilities of Emu Ltd

(a) Consideration transferred

(b) Non-controlling interest
Aggregate of (a) and (b)
Goodwill

Goodwill of subsidiary:
Fair value of Emu Ltd
Net fair value of identifiable assets
and liabilities of Emu Ltd
Goodwill of Emu Ltd
Goodwill of Echidna Ltd:
Goodwill acquired
Goodwill of Emu Ltd
Goodwill of Echidna Ltd
- control premium

=
=
=
=
=
=
=
=

$400 000 + $50 000 + $40 000

+ $30 000 + $40 000(equity)
$560 000
(75% x 400 000 shares) x $1.50 per share
$450 000
$147 000
$597 000
$597 000 - $560 000
$37 000

=
=

$147 000/0.25
$588 000

=
=
=

$560 000
$588 000 - $560 000
$28 000

=
=

$37 000
$28 000

$9 000

1. Business combination valuation entries

Goodwill
Business combination valuation reserve

Dr
Cr

28 000

Dr
Dr
Dr
Dr
Dr
Dr
Dr
Cr

30 000
300 000
37 500
30 000
22 500
21 000
9 000

28 000

2. Pre-acquisition entries
At 1 July 2012
Retained earnings (1/7/12)
Share capital
General reserve
Asset revaluation surplus (1/7/12)
Other components of equity (1/7/12)
Business combination valuation reserve
Goodwill
Shares in Emu Ltd

13

450 000

Tutorial Week 8 Moodle Questions and Solutions

At 30 June 2013:
Retained earnings (1/7/12)
Share capital
General reserve
Asset revaluation surplus (1/7/12)
Other components of equity (1/7/12)
Business combination valuation reserve
Goodwill
Shares in Emu Ltd

Dr
Dr
Dr
Dr
Dr
Dr
Dr
Cr

30 000
300 000
37 500
30 000
22 500
21 000
9 000

Dr
Dr
Dr
Dr
Dr
Dr
Cr

10 000
100 000
12 500
10 000
7 500
7 000

NCI share of profit

NCI
(25% x $223 200)

Dr
Cr

55 800

Gains/Losses - asset revaluation surplus

NCI
(25% [$60 000 - $40 000])

Dr
Cr

5 000

Gains/Losses - other components of equity

NCI
(25%[$40 000 - $30 000])

Dr
Cr

2 500

NCI

Dr
Cr

7 500

Dr
Cr

2 500

Dr
Cr

22 500

450 000

3. NCI share of equity of at 1/7/12

Retained earnings (1/7/12)
Share capital
General reserve
Asset revaluation surplus (1/7/12)
Other components of equity (1/7/12)
Business combination valuation reserve
NCI
4.

147 000

NCI share of equity: 1/7/12 - 30/6/13

Dividend paid
(25% x $30 000)
NCI
Dividend declared
(25% x $10 000)

55 800

5 000

2 500

7 500

2 500

5. Dividend paid
Dividend revenue
Dividend paid
(75% x $30 000)

22 500

14

Tutorial Week 8 Moodle Questions and Solutions

6. Dividend declared
Dividend payable
Dividend declared
(75% x $10 000)

Dr
Cr

7 500

Dividend revenue
Dividend receivable

Dr
Cr

7 500

Dr
Cr

80 000

7 500

7 500

7. Advance
Advance from Echidna Ltd
Advance to Emu Ltd

80 000

8. Sale of inventory: Echidna Ltd to Emu Ltd

Sales revenue
Cost of sales
Inventory

Dr
Cr
Cr

55 000

Deferred tax asset

Income tax expense

Dr
Cr

1 500

Dr

60 000

50 000
5 000

1 500

9. Sale of equipment: Emu Ltd to Echidna Ltd

Proceeds on sale of equipment other income
Carrying amount of equipment sold
other expenses
Equipment

Cr
Cr

Deferred tax asset

Income tax expense

Dr
Cr

2 400

Dr
Cr

1 400

52 000
8 000

2 400

10. NCI adjustment

NCI
NCI share of profit
(25% ($8 000 - $2 400))

15

1 400

Tutorial Week 8 Moodle Questions and Solutions

11. Depreciation
Accumulated depreciation
Depreciation expense
(10% x $8 000)

Dr
Cr

800

Income tax expense

Deferred tax asset

Dr
Cr

240

Dr
Cr

140

800

240

12. NCI adjustment

NCI share of profit
NCI
(25% ($800 - $240))

140

16

Tutorial Week 8 Moodle Questions and Solutions

Financial
Statements
Sales revenue
Cost of sales
Other income

Echidna
Ltd
878 900
374 400
504 500
302 100

Emu
Ltd
388 900
112 400
276 500
112 500

Other expenses

806 600 389 000

216 200 115 800

Profit before
tax
Tax expense

590 400 273 200

Profit

478 000 223 200

Ret. earnings
(1/7/12)

112 000

Dividend paid
Div. declared
Ret. earnings
(30/6/13)
Share capital
BCVR
General reserve
ARS (1/7/12)
Gains/losses
ARS (30/6/13)
Other comp (op)
Gains/losses
Other comp. (cl)
Total equity:
parent
Total equity:
NCI

Total equity
Current
liabilities
Total liabilities
Total equity
and liabilities

112 400

50 000

40 000

5
6
9

Adjustments
Dr
Cr
55 000
50 000

800
52 000

24 000 50 000
1 724 000 673 200
40 000 40 000
30 000 20 000
70 000 60 000
25 000 30 000
5 000 10 000
30 000 40 000

11
9

Parent
Cr

1 212 800
436 800
776 000
324 600

1 100 600
279 200
821 400

11

240

1 500
2 400

8
9

158 740
662 660 4
12
122 000 3

30 000

22 500
7 500

5
6

2
2
2

300 000
21 000 28 000
37 500

30 000

22 500

1 824 000 773 200

177 000 124 400

NCI
Dr

22 500
7 500
60 000

590 000 263 200

40 000 30 000
50 000 10 000
90 000 40 000
500 000 223 200
1 200 000 400 000

Group

784 660
47 500
52 500
100 000
684 660
1300 000
7 000
36 500
2 028 160
50 000
50 000
100 000
32 500
15 000
47 500

2 175 660
6
7

7 500
80 000

213 900

177 000 124 400

2001000 897 600

213 900
2 389 560

17

55 800
140
10 000

1 400

10

112 000

7 500
2 500

4
4

3 100 000
7 000
3
3 12 500
-3 10 000
5 000
4
3
4

7 500
2 500

4
4
10

7 500
2 500
1 400

608 120

147 000
55 800
5 000
2 500
140
221 840 221 840

720 120
40 000
50 000
90 000
630 120
1 200 000
0
24 000
1 854 120
40 000
45 000
85 000
25 000
12 500
37 500
1 976 620

3
4
4
4
12

199 040

2 175 660

Tutorial Week 8 Moodle Questions and Solutions

Receivables

320 000 175 000

Inventory
Financial assets
Shares in Emu
Other
investments
Equipment
Accum
depreciation
Deferred tax
asset
Land
Goodwill

287 500 210 600

280 000 204 000
450 000
-47 000
-650 000 360 000
(250 000) (160000) 11
--

--

216 500 108 000

--2 001 000 897 600

8
9
1
2

7 500
80 000
5 000

6
7
8

450 000

8 000

1 002 000
(409 200)

240

11

3 660

800
1 500
2 400

28 000
9 000
715 440 715 440

407 500
493 100
484 000
-47 000

324 500
37 000
2 389 560

18

Tutorial Week 8 Moodle Questions and Solutions

ECHIDNA LTD
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the financial year ended 30 June 2013
Income:
Sales revenue
Other income
Total income
Expenses:
Cost of sales
Other
Total expenses
Profit before income tax
Income tax expense
Profit for the period
Other comprehensive income:
Asset revaluation surplus: gains
Other components of equity: gains
Comprehensive income for the period
Profit for the period attributable to:
Parent interest
Non-controlling interest

$1 212 800
324 600
1 537 400
436 800
279 200
716 000
821 400
158 740
$662 660
50 000
15 000
$727 660

$608 120
$ 54 540
$662 660

Comprehensive income for the period attributable to:

Parent interest
Non-controlling interest

19

665 620
62 040
$727 660

Tutorial Week 8 Moodle Questions and Solutions

ECHIDNA LTD
Consolidated Statement of Changes in Equity
for the financial year ended 30 June 2013

Comprehensive income for the period

Group
$727 660

Parent
$665 620

Retained earnings:
Balance at 1 July 2012
Profit for the period
Dividend paid
Dividend declared
Balance at 30 June 2013

$122 000
662 660
(47 500)
(52 500)
$684 660

$112 000
608 120
(40 000)
(50 000)
$630 120

General reserve:
Balance at 1 July 2012
Balance at 30 June 2013

$36 500
$36 500

$24 000
$24 000

Share capital
Balance at 1 July 2012
Balance at 30 June 2013

$1 300 000
$1 300 000

$1 200 000
$1 200 000

Asset revaluation reserve:

Balance at 1 July 2012
Gains/Losses
Balance at 30 June 2013

$50 000
50 000
$100 000

$40 000
45 000
$85 000

$32 500
15 000
$47 500

$25 000
12 500
$37 500

$7 000
$7 000

Other components of equity:

Balance at 1 July 2012
Gains/Losses
Balance at 30 June 2013
Business combination valuation reserve:
Balance at 1 July 2013
Balance at 30 June 2013

20

Tutorial Week 8 Moodle Questions and Solutions

ECHIDNA LTD
Consolidated Statement of Financial Position
as at 30 June 2013
ASSETS
Current Assets
Receivables
Inventory
Financial assets
Non-current Assets
Property, plant and equipment
Land
Equipment
Accumulated depreciation
Goodwill
Deferred tax assets
Other investments
Total Non-current Assets
Total Assets

$407 500
493 100
484 000

$324 500
1 002 000
(409 200)

EQUITY AND LIABILITIES

Equity attributable to equity holders of the parent
Share capital
Reserves: General reserve
Asset revaluation surplus
Other components of equity
Retained earnings
Parent Interest
Non-controlling Interest
Total Equity
Total Liabilities: Current Liabilities
Total Equity and Liabilities

21

$1 384 600

917 300
37 000
3 660
47 000
1 004 960
$2 389 560

$1 200 000
24 000
85 000
37 500
630 120
1 976 620
199 040
2 175 660
213 900
$2 389 560