NC I - Beginning
NI-NC I
Dividend Declared S - NC I
NCI at December 31
x
x
(x)
x
BV - SHE - Janauary 1
NI
Dividend Declared
SHE - Subsidiary - December 31
FV Adjustment:
Equipment
Building
Dep. Expense - Equipment (Alloc. Amortization)
Dep. Expense - Building(
SHE - Subsidiary - December 31 @FV
x
NCI @ Proportionate
NC I @ Goodwill
NC I @ Impairment Goodwill
(Impairment Loss x NC I goodwill/Total goodwill) Under FV only
NCI @ Fair value
RE- Parent January 1
C onsolidted NI-Attributed to Parent
Dividend declared - Parent
Consolidated RE- Dec. 31
x
(x)
(x)
x
20%
x
x
(x)
x
x
x
(x)
x
RE - Parent December 31
x
SHE-Sub. - January 1
SHE-Sub. -December 31
C hanges
Accumulated Alloc. Amortization
Accumulated Alloc. Amortization
x
x
x
(x)
x
x
80%
x
Accumulated Impairment loss-Parent
Consolidated RE- Dec. 31
x
x
x
x
(Impairment Loss x Parent goodwill/Total goodwill) Under FV
(x)
only
x
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SUBSEQUENT TO THE DATE OF CONSOLIDATION
*Legends:
1. CNI – P : Conso Net Income – Parent
2. NCI – NI : Non-controlling Interest – Net Income
CNI – P
1. Parent Net Income (could be fractional)
2. Less: Dividend Received -cost method
(Div. of Subsidiary x Control %)
Less: Investment income -equity method
2.1. Income from own operation / separate inc. of parent
3. Add: Share of Net Income (could be fractional)
4. Less: Amortization of UV Asset
(UVA / Remaining Life) x (no.of mos/12)
5. Add: Amortization of OV Asset
(OVA / Remaining Life) x (no.of mos/12)
6. Add: Gain on BPO on year of Business Combination
7. Less: Impairment Loss –(If NCI is measured at FV)
8. Less: Impairment Loss –(If NCI is measured at Proportionate)
A (Impairment loss x (Parent @goodwill
B (Impairment loss x (NCI @goodwill
xx
(xx)
(xx)
xx
xx
(xx)
xx
(xx)
xx
xx
xx
(xx) A
(xx) B
(xx)----------------0 Not applicable
xx
xx
÷ Total @goodwill)
÷ Total @goodwill)
NOTE: Gain on BPO on the subsequent year should be adjusted on R/E, not on Net Income.
Cost to issue debt / equity securities is not expensed.
Page | 2
NCI-NI
Cost Method - NCI - Full
Net income
Dividend income
Dividend income
Amortization
Before impairment loss
Impairment loss
C onsolidated
C onsolidated NI
Less: NC I-NI subsidiary
C onsolidated NI-Parent
P
400,000
12,000
412,000
(12,000)
400,000
(20,000)
380,000
S
50,000
NCI-NI subsidiary
50,000
(4,000)
46,000
46,000
9,200
(4,000) (10/50x20K)
5,200
426,000
(5,200)
420,800
Equity Method - NCI - Full
Net income
Investment income
Investment income
Amortization
Before impairment loss
Impairment loss
C onsolidated
C onsolidated NI
Less: NC I-NI subsidiary
C onsolidated NI-Parent
P
400,000
20,800
420,800
(20,800)
400,000
(20,000)
380,000
S
50,000
NCI-NI subsidiary
50,000
(4,000)
46,000
46,000
9,200
(4,000) (10/50x20K)
5,200
426,000
(5,200)
420,800
Cost Method - NCI - Partial
Net income
Dividend income
Dividend income
Amortization
Before impairment loss
Impairment loss
C onsolidated
C onsolidated NI
Less: NC I-NI subsidiary
C onsolidated NI-Parent
P
400,000
12,000
412,000
(12,000)
400,000
(16,000)
384,000
S
50,000
NCI-NI subsidiary
50,000
(4,000)
46,000
46,000
9,200
9,200
430,000
(9,200)
420,800
Equity Method - NCI - Partial
Net income
Investment income
Investment income
Amortization
Before impairment loss
Impairment loss
C onsolidated
C onsolidated NI
Less: NC I-NI subsidiary
C onsolidated NI-Parent
P
400,000
20,800
420,800
(20,800)
400,000
(16,000)
384,000
430,000
(9,200)
420,800
S
50,000
NCI-NI subsidiary
50,000
(4,000)
46,000
Page | 3
46,000
9,200
9,200