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Basic group accounts (F1 revision)

Consolidation adjustments and the

CSOPL

5.1 Common consolidation issues for CSOPL

 Mid-year acquisitions

If a subsidiary is acquired part way through the year, the group will add 100% of
income and expenses since the acquisition date.

 FV adjustment depreciation (see Chapter 13)

Any extra depreciation charged as a result of a FV adjustment on S’s assets will be
charged to the group p/l.

The NCI% will be allocated to the NCI balance.

 Intra-group sales

Any impact of intragroup sales will be removed from group revenue
and COS.

The group cannot show revenue from sales to itself!

 PUP adjustments

If an intra-group sale occurs at a profit and the goods remain in the group:

– always add the PUP to the SELLERS cost of sales.

 Impairment

Using proportionate – all allocated to P. No impact to NCI.

Using FV method – split between P and NCI. Must include NCI% of impairment
within NCI share of TCI.

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