Page 559 - F2 Integrated Workbook STUDENT 2019

Answers to supplementary objective test questions

15.2 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.

15.3 C, E and F

Dividends received are not shown separately within the statement of changes in
equity. Dividends paid by the parent and the dividends paid by the subsidiary to
non-controlling interests are recorded separately but not dividends received.

Only share capital and share premium of the parent is included. The
subsidiary’s share capital and share premium are not shown within the
consolidated financial statements at all.

Revaluation gains for the group will be shown within the consolidated statement
of changes in equity as part of the total comprehensive income for the year
attributable to P and NCI’s.

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