Subsidiary

Step 1
Step 2
Recognition of intangible asset
(1) Dr Intangible asset 200,000
Cr Deferred tax liability 40,000
Cr Busisness combination revaluation reserve 160,000

Parent NCI
Consideration transferred 1,800,000 1,800,000
Non-controlling interest (FV) 180,000 180,000
Fair value of net assets 1,660,000 1,494,000 166,000
Goodwill 320,000 306,000 14,000

Pre-acquistion
(2) Dr Share capital 500,000 450,000
Dr Retained earnings 1,000,000 900,000
Dr Business combination rr 160,000 144,000
Dr Goodwill 306,000
Cr Investment in Y Co 1,800,000

Amortisation of FV - BV

Step 3
Intragroup transaction
(3) Dr Proceed from disposal of fixed assets 150,000 (Thu nhap khac)
Cr Carrying amount of fixed assets disposed 48,000 (Chi phi khac)
Cr Fixed assets 102,000

(4) Dr Deferred tax liability 20,400

Cr Deferred tax expense 20,400

(5) Dr Accumulated depreciation 34,000

Cr Depreciation expense 34,000

(6) Dr Deferred tax expense 6,800

Cr Deferred tax liability 6,800

(7) Dr Inventory 10,000

Cr Retained earnings 10,000

(8) Dr Retained earnings 2,000

Cr Deferred tax liability 2,000

(9) Dr Cost of goods sold 10,000

Cr Inventory 10,000
(10) Dr Deferred tax liability 2,000
Cr Deferred tax expense 2,000

Trasferrence
Profit after tax (62,400)
(11) Dr Retained earnings 62,400
Cr Profit after tax 62,400

Step 4
At acquisition date
(12) Dr Share capital 500,000 50,000
Dr Retained earnings 1,000,000 100,000
Dr Business combination rr 160,000 16,000
Dr Goodwill 14,000
Cr Investment in Y Co 180,000

From the acquisition date to the beginning of the current period

At A.D O.B. Changes NCI
Share capital 500,000 500,000 - -
Business combination rr 160,000 160,000 - -
Retained earnings 1,000,000 1,500,000 500,000 50,000
50,000
(13) Dr Retained earnings 50,000
Cr Non-controlling interest 50,000

In the current period

Profit after tax 1,040,000
Adjustments for
(3) (102,000)
(4) 20,400
(5) 34,000
(6) (6,800)
Adjusted profit after tax 985,600
Non-controlling interest 98,560

(14) Dr Retained earnings 98,560

Cr Non-controlling interest 98,560

Dividend distribution 200,000

(15) Dr Dividend revenue 180,000

Cr Dividend declared 180,000

(16) Dr Non-controlling interest 20,000

Cr Dividend declared 20,000

(17) Dr Accounts payable 180,000

 Cr Accounts receivable 180,000

Transferrence

(18) Dr Retained earnings 20,000

Cr Profit retained 20,000

Associates
Associates
Cost 500,000
FV of net asset 1,240,000
Goodwill 128,000

At A.D OB Changes
Retained earnings 700,000 900,000 200,000
Adjustment for
Khong co dieu chinh gi het
No yes adjustment whatever

60,000

(19) Dr Investment in Z 60,000

Cr Retained earnings 60,000

Profit after tax 1,100,000

Adjustment for
Impairment of intangible assets (72,000)
Adjusted profit after tax 1,028,000
308,400

(20) Dr Investment in Z 308,400

Cr Income from Z 308,400

Dividend declared 100,000

30,000
(21) Dr Dividend revenue 30,000
Cr Investment in Z 30,000

(22) Dr Profit after tax 278,400

Cr Retained earnings 278,400