MANG3003 Income Statement

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8 Terms

1
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cost of investment:

(share value / nominal value of shares) x fraction of giving shares x price of parent’s share x ownership %

2
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treating revalutation:

add revaluation amount to net assets at acquisition

calculate depreciation, add to cost of sales

3
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profit to date of acquisition

subsidiary profit for year plus (investment amount x % x period)

4
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how to treat interco transactions

less investment income

less finance costs

5
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how to treat URP

add to cost of sales

6
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Fair value of NCI

NCI % x shares of subsidiary x share price of subsidiary

7
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Fair value Goodwill calculation

cost of investment

add fair value of NCI

total

less net assets at acquisition

goodwill

8
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profit split, final stage

attributable to:

group: total - NCI

non controlling interest: (post acquisition profit - depreciation) x NCI%