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Consolidated financial statements I

3.2 Pro-forma

The easiest way to set up your pro-forma is to use the single entity financial
statements given in the question for the parent and subsidiary and copy them line-by-
line, remembering to include your additional consolidation lines for goodwill and non-
controlling interest (and also leaving some space for adding/subtracting amounts as
indicated in the pro-forma below).

ASSETS
$ $

Non-Current Assets

Goodwill (W3) – new line! X

Property, plant and equipment X
(P + S + fair value adj – PURP on sale)
Investment in associate (see next chapter)

––– X

Current Assets

Inventories (P + S – PURP) X
Trade receivables (P + S – intra-group balances) X

Cash and cash equivalents (P + S) X

––– X

–––
Total assets X

–––

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