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F2: Advanced Financial Reporting

CHAPTER 16 – CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY

16.1 D

The amount attributable to parents shareholders = 100% of Parents total
comprehensive income + 100% of S’s total comprehensive income – NCI share
of S’s total comprehensive income. As the acquisition of Snoopy occurred 6
months into the year, only the total comprehensive income earned by Snoopy
since acquisition is consolidated.

= 310 + (220 × 6/12) – (30% × (220 × 6/12)

= 387

Non-controlling interest share of total comprehensive income = 30% × (220 ×
6/12) = 33

Workings are given in $000s.

16.2 34,500 and (544,500)
Attributable to
parent
shareholders ($) NCI ($)
Equity b/f 3,652,000 890,263
Total comprehensive income 1,896,000 158,000
Dividends paid (42,000) (15,000)

Adjustment to equity on acquisition 34,500 Blank
Adjustment to NCI on acquisition Blank (544,500)
–––––– ––––––
Equity c/f X X

–––––– ––––––

The entry for the share transaction is:

Dr NCI $544,500

Cr Cash $510,000

Cr Equity $34,500

A credit to equity represents an increase and has a positive impact. A debit to
NCI is a reduction and is negative.

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