IAS27Consolidatefinancialstatementsandaccountingfor教程.ppt

Changes of parent enterprise interest The effects of a subsequent bonus issue or a capital reduction of a subsidiary enterprise Disposals of subsidiaries Deemed disposals The subsidiary issues shares to third parties The group does not take up its full allocation in a rights issue by the subsidiary The subsidiary declares scrip dividends which are not taken up by the parent. A third party exercises options or warrants Example A The following amounts of profit after tax relate to the IFA Group of entities IFA $300,000 BBC 80,000 ITV 50,000 TVB 120,000 RTV 160,000 IFA owns 75% of the voting power in BBC and 30% of the voting power in ITV. BBC also owns 30% of the voting power in ITV and 25% of the voting power in RTV. ITV owns 40% of the voting power in TVB. Required What is the status of each entity in the group and how is the minority share in the group profit after tax calculated? BBC and ITV are both subsidiaries of IFA which owns directly or indirectly through a subsidiary more than 50% of the voting power in the entities. ITV and RTV are deemed to be associates of BBC while TVB is deemed to be an associate of ITV unless it can be demonstrated that significant influence does not exist. The minority interest in the group profit after tax is calculated as follows. Solution A Profit after tax of ITV Own 50,000 Equity accounted TVB (40% x 120,000) 48,000 98,000 Minority interest (40% x 98,000) 39,200 Profit after tax of BBC Own 80,000 Equity accounted ITV (30% x 98,000) 29,400 RTV (25% x 160,000) 40,000 149,400 Minority interest (25% x 149,400) 37,350 76,550 Example B A European parent company with subsidiaries in various countries follows the accounting policy of LIFO costing for all inventories in t