Consolidated Financial Statements (Reviewer)

CONSOLIDATED FINANCIAL STATEMENTS STEPS: 1. Step 1 is same as Stock Acquisition 2. Working Paper Entries a. Eliminate b. Update c. Recognize Goodwill i. NI/NL ii. Amortize* - Mdse / Invty  Update Y1  Amortize in Full - Land  Update Y1  Walang bawian - Other Assets  Update Y1  Patent / Remaining Useful life x (n/12)  Plant Assets iii. Amortization Table*(Example) Name of Asset +/- Update AY1 AY2 1. Mdse. +78,750 (78,750) 0 2. Plant Asset +131,250 (13,125*) (13,125) 3. Patent + 52,500 (10,500*) (10,500) 262,500 102,375 23,625 * (131,250/10) x (12/12) = 13,123 * (52,500/5) x (12/12) = 10,500 iv. Impairment (Assumed value kasi yung ginamit. (Example) 80% ; 20,000

Parent

80%

72,000

GOODWILL

25, 000 20%; 5,000

Subsidiary

20%

18,000

 OFFICIAL FORMULA #1 - NCINIS (MINI) Y1 [Nominal Account - Not Cumulative]  NCINIS - Non Controlling Interest in NI of Subsidiary  MINI - Minority Interest in NI NI - SY1 +/- Amortization (Impairment Loss) NI as Adjusted X NCI%_________ NCINIS Y1

x x (x) x (x) x

NI-SY1 +/- Amortization______________________ NI as adjusted subject to Impairment Loss or… x NCI%______________________________ Total Impairment Loss attributable to S. Company NCINIS  OFFICIAL FORMULA #2 - NCINAS (MINA) [Real Account - Cumulative]  NCINAS - Non Controlling Interest in Net Assets of Subsidiary SHE + NI - S + Dividends - S +/- Excess +/- Amortization Goodwill (Impairment Loss)

x x x x x x (x) X x x

x NCI %_________ NCINAS ERIKA MAE ARMES RELLORES

or…

SHE + NI - S + Dividends - S +/- Excess +/- Amortization_____________________ NA as Adjusted subject to Impairment Loss x NCI %_____________________________ NCINAS before GW and IL + GW attributable to S - IL attributable to S_________________ NCINAS

x x x x x (x) x

x x x x x x x x x (x) x

 OFFICIAL FORMULA #3  Consolidated Net income (Direct Method) NI - PY1 x NI - SY1 x (Amortization) (x) (Impairment Loss) (x) (Inter-company Dividend) (x) IFA Y1 _-_ CNI x (NCINIS) (x) CNI-P x  Consolidated Net Income (2-Birds) P(50%) NI - P x NI - S x (Amortization) (x) (Impairment Loss) (x) (Intercompany Dividend) (x) IFA-P -0x

S(50%) -0x (x) (x) (x) -0x

 OFFICIAL FORMULA # 4 - CRE - Consolidated Retained Earnings RE - POTDOA x + CNI - P x (Dividend dec. by P) (x) CRE x  OFFICIAL FORMULA # 5 - CSHE - Consolidated Shareholders Equity C/S - P x + APIC - P x + CRE x + NCINAS x CSHE x d. WP Entries: Amortize and Impair e. Eliminate Intercompany Dividend f. Rivalry

ERIKA MAE ARMES RELLORES