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Format Csofp

This document outlines the 5 steps to prepare a consolidated statement of financial position (CSOFP) for a group with a parent (H Bhd) that has acquired subsidiaries (S and SS). Step 1 identifies the group structure and equity percentages held. Step 2 prepares an equity table. Step 3 calculates goodwill on acquisition. Step 4 calculates non-controlling interests and retained earnings for consolidation. Step 5 prepares the final CSOFP by consolidating the balances of H, S and SS. Additional information is provided on accounting for bonus issues pre-and post-acquisition.

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Rosaidy Sudin
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353 views7 pages

Format Csofp

This document outlines the 5 steps to prepare a consolidated statement of financial position (CSOFP) for a group with a parent (H Bhd) that has acquired subsidiaries (S and SS). Step 1 identifies the group structure and equity percentages held. Step 2 prepares an equity table. Step 3 calculates goodwill on acquisition. Step 4 calculates non-controlling interests and retained earnings for consolidation. Step 5 prepares the final CSOFP by consolidating the balances of H, S and SS. Additional information is provided on accounting for bonus issues pre-and post-acquisition.

Uploaded by

Rosaidy Sudin
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

FORMAT CSOFP 1st STEP Identify the structure H Bhd Direct Control Indirect Control S 80%

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%

(Example) (Example) (80% x 60%) 30% +48%

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 Investment in SS by S x H% in S OSC (note 1)

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

(S NCI 20% x S OSC x FV) Or if given just take the value

XXX

XXX XXX

XXX XXX XXX XXX (XX) (XXX)

(TTTT) XXX (XX) XXX

XXX XXX XXX XXX (XX) (XXX)

(UUU) (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

ZZZ SSS YYY

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

XXX (XX) (XX) XX XXX (XX) (XXX) DDDD

FOR OTHER POST ACQUISITION RESERVE (IF NECESSARY) NCI General Reserve S Bal c/d XXX GGR

-pre (always follow goodwill balance) Post Adjustment

(XXX) XXX XXX EEE

(EEEx20%)

(EEEx80%)

XXX

XXX

General Reserve SS Bal c/d -pre (always follow goodwill balance) Post Adjustment

XXX (XXX) XXX XXX FFF

(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

XXXX XXXX XXXX

XXX XXX XXX XXX XX XXXX

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

XXXX XXXX XXX DDDD HHHH XXX XXX

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

XXX vvv XXX XXX XXX (XX) (XXX)

(TTTT) XXX vvv XXX (XX) XXX

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

VVV NCI (NCI % x VVV) Capital Reserve (H% x VVV)

XXX XXX transfer to CSOFP

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

XXX vvv XXX xxx XXX (XX) (XXX)

(TTTT) XXX (XX) XXX

Schedule : Same as post general reserve

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