BUSINESS COMBINATIONS FORMULAS

Div. Inc. of P = Div. dec. by S * %CI , if NOT wholly owned.

AP of S, beg * %NCI
NCINIS

CNI

Unadj. NI of S

xx

Add (Deduct) Amortizations

Realized Mk-up on BI:

XX

EHP
xx
xx
(xx)
%CI
%CI

UpS
DownS
(Unrealized Mk-up on EI):
UpS
DownS
TOTAL

xx
xx

%CI
xx

%NCI

(xx)
(xx)
~

(%CI)
(xx)
~

(%NCI)

Gain, ONLY on acq. date

xx

Unadj. NI of P

xx

(Div. Inc.)

(xx)

NCINIS

(Div. dec. by S * %NCI)

%NCI
%NCI

xx

AP of P, beg

xx

(Div. dec. by P @ 100%)

AP of P attrib. to EHP
AP of P, beg
AP of S, beg * %NCI
From prior years or undist. sh.
CNI < From
Current year
(Div. dec. by P @ 100%)
(Div. dec. by S * %NCI)

CAP
Adj. NI of S:
Unadj. NI of S
Add(Deduct) Amortizations
Upstream Sales:
Realized Mk-up on BI
(Unrealized Mk-up on EI)
Multiply by %CI
Less: Div. Inc. of P

xx
xx
xx
(xx)

Undistributed Shares
or NI attrib. to EHP
(Unadj. NI of P)

Undistributed Shares
NCINAS, beg
NCINIS
(Div. dec by S * %NCI)

NCINAS, end

xx
(xx)
xx
xx
xx
(xx)
xx

! Undist. Sh. = Elim. Entry (cr)

AP of P

Net Sales of P @ 100%

Net Sales of S @ 100%
(Interco. Sales)

CSALES
xx
%CI

xx
(xx)
xx

!Elimination Entry (Dr)

AP of S, beg
Unadj. NI of S
(Div. dec. by S)

AP of S, end

xx
(xx)

AP of S atttrib. to NCI

NI attrib. to EHP

xx

xx
(xx)
xx
xx
xx
xx
(xx)
(xx)
xx
xx
xx
(xx)
xx

COGS of P @ 100%
COGS of S @ 100%
Add(Deduct) Amortizations on Inventory
(Interco. Sales)
(Realized Mk-up on BI of S & P)
Unrealized Mk-up on EI of S&P
xx
xx
(xx)
xx

CCOGS
Inv'ry of P, end@ 100%
Inv'ry of S, end @ 100%
(Unrealized Mk-up on EI of S&P)

CINVENTORY

xx
xx
xx
(xx)
(xx)
xx
xx
xx
xx
(xx)
xx

%Mk-up on Sales =
(SP-COST)/SP
Where, SP = Selling
Price