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SUBSEQUENT TO DATE
OF ACQUISITION
Chapter 16
Consolidated Net Income (CNI)
The ff. entry was included in the eliminating entries used to prepare the consolidated financial
statement at Dec 31, 2011:
Dr. Retained Earnings, 1/1 – Sisa 21,000
Cr. Non-Controlling Interest 21,000
■ What amount of retained earnings did Sisa report on January 1,
2010?
■ What amount should be reported as consolidated retained earnings
at January 1, 2011?
■ What amount should be reported as consolidated net income for
2011?
■ What amount should be reported as consolidated net income
attributable to parent on 2011?
■ What amount should be reported as consolidated retained earnings
at December 31, 2011?
Answer
Eliminating entry NCI-NIS P 21,000 ÷ 30% = P 70,000 Adjusted Net Income of Subsidiary
“ No need to deduct dividends declared by parent since the given Retained Earnings is
already as of Jan 1, 2011. (Dividends already deducted)”
Answer
Net income – parent P120,000
Net income – subsidiary 25,000
Less: Amortization ( 5,000)
Less: Impairment ( - )
Add: income from acquisition -
Intercompany dividends 10kx70% ( 7,000)
Consolidated Net Income 133,000
NCI-NIS (20,000 x 30%) (6,000)
Consolidated Net Income --------------
attributable to parent 127,000
Answer