FAR 620
Steps in preparing the CSOFP
1. Calculate % of acquisition
2. Compute goodwill
Computation of Goodwill
Consideration transferred
- Cash x
- Equity (formula X FV of H) x
- Asset x
- Contingent consideration x
NCI (at FV - #OSC of S x %NCI x FV of S) x
xx
Less: Fair value of net asset on acq date
OSC x
Retained profit
All pre reserves x
XX
Goodwill or (Bargain purchase) xx/ (xx)
Impairment of goodwill (refer to NCI) (x)
Goodwill on consolidation (transfer to CSOFP) xx
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3. Prepare schedule for Group Retained Profits (GRP) and Non Controlling Interest (NCI)
GRP NCI
NCI at acquisition date x
PSC x
Impairment of goodwill - if at FV (x) (x)
Impairment of goodwill - if prop (x)
Bargain purchase x
Retained profit - S x
Less: pre profit (x)
post profit x
Add: Dep over provided x
Less: URP-inventory (x)
URP-asset (x)
Dep under provided (x)
Debenture interest payable (x)
Ordinary dividend payable (x)
Preference dividend payable (x)
A A x %H A x %NCI
Retained profit - H x
Add: Dep over provided x
Ordinary dividend receivable -S x
Preference dividend receivable -S x
Debenture interest receivable -S x
Less: URP-inventory (x)
URP-asset (x)
Dep under provided (x)
Debenture interest payable (x)
Ordinary dividend payable (x)
Preference dividend payable (x)
General reserve – S (total – pre) X % NCI x
Transfer to CSOFP xxx xxx
4. Prepare schedule for other reserves (option)
GGR GRR
General reserve - H x
- S (total – pre) X 75% x
Transfer to CSOFP xx -
Revaluation reserve - H x
- S (total – pre) X 75% x
Transfer to CSOFP - xx
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5. Prepare Consolidated Statement of Financial Position (CSOFP)
ABC Group
Consolidated Statement of Financial Position as at xxxx
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