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

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Presentation on theme: "Dr Marcin Jędrzejczyk. Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2."— Presentation transcript:

1 Dr Marcin Jędrzejczyk

2 Consolidated accounts – an overview GROUP FINANCIAL STATEMENTS JOINTLY CONTROLLED ENTITY ASSOCIATE SUBSIDIARY 2

3 Consolidated accounts – an overview ASSOCIATEJOINTLY 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 3

4 Acquisition Method (1)  Parent Company has purchased 100% of Shares for zl in Subsidiary Company. Net Assets Value equals zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method. 4

5 Acquisition Method (2)  Parent Company has purchased 80% of Shares for zl in Subsidiary Company. Net Assets Value equals zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method. 5

6 Parent Company (P) (in zł) Subsidiary (S) (in zł) ASSETS Goodwill Property Plant and Equipment Investment in S Long term receivables Inventories Receivables Cash Other Commodities TOTAL ASSTES LIABILITIES + OE Owners Equity Share Capital Supplementary Capital Profit/loss Reserves Long-term liablities Liabilities TOTAL LIAB. + OE

7 Proportionate Method  Parent Company has purchased 80% of Shares for zl in JCE Company. Net Assets Value equals zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the proportionate consolidation. 7

8 Parent Company (P) (in zł) JCE (JCE) (in $) ASSETS Goodwill Property Plant and Equipment Investment in S Long term receivables Inventories Receivables Cash Other Commodities TOTAL ASSTES LIABILITIES + OE Owners Equity Share Capital Supplementary Capital Profit/loss Reserves Long-term liablities Liabilities TOTAL LIAB. + OE

9 Uniting of Interest Method  Company P has purchased 80% of Shares for zl in Associate Company. Net Assets Value equals zl at the date of acquistion. Using the given data prepare the consolidated balance sheet using the Uniting of Interest Method. 9

10 Parent Company (P) (in zł) ASSETS Goodwill Property Plant and Equipment Investment in S Long term receivables Inventories Receivables Cash Other Commodities TOTAL ASSTES LIABILITIES + OE Owners Equity Share Capital Supplementary Capital Profit/loss Reserves Long-term liablities Liabilities TOTAL LIAB. + OE

11 Acquisition Method (1)  Parent Company has purchased 100% of Shares for zl in Subsidiary Company. Net Assets Value equals $85000 at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method. Exchange rate equals 3,5 zł/$. 11

12 Acquisition Method (2)  Parent Company has purchased 80% of Shares for zl in Subsidiary Company. Net Assets Value equals $85000 at the date of acquistion. Using the given data prepare the consolidated balance sheet using the acquistion method. Exchange rate ewuals 3,5 zł/$. 12

13 Parent Company (P) (in zł) Subsidiary (S) (in USD) ASSETS Goodwill Property Plant and Equipment Investment in S Long term receivables Inventories Receivables Cash Other Commodities TOTAL ASSTES LIABILITIES + OE Owners Equity Share Capital Supplementary Capital Profit/loss Reserves Long-term liablities Liabilities TOTAL LIAB. + OE


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