3|PREPARE CONSOLIDATED SOFP |FAR300 SEP2011-EDITED|STEP 3:GROUP RESERVES, NCI& INTERCO TRANS|FAR320

#Consolidation#FAR320 #FAR620 #CSOFP #CSFP #SFP #acca
The question(edited version) used in this video can be downloaded from this link:
https://drive.google.com/file/d/1S2mK...

In this 3 video series I show detailed step by step comprehensive illustration on the preparation of #ConsolidatedStatementofFinancialPosition (CSOFP).

I discuss the following the consolidation adjustments and workings with complete consolidation journal entries for:

1. Bonus Issue By Subsidiary out of post- acquisition reserves.
2. Surplus on Fair value adjustment of non-current depreciable asset in subsidiary on acquisition date and the adjustment for depreciation underprovided under reducing balance method.
3. Calculation of Goodwill for acquisition of ordinary shares, redeemable preference shares and debentures in the subsidiary.
4. Intercompany redeemable preference dividends where both parent and subsidiary HAVE NOT RECORDED the redeemable preference dividends, including the elimination of intercompany dividends.
5. Intercompany debenture interest where subsidiary HAS RECORDED but parent HAS NOT credited its debenture interest receivable, including the elimination of intercompany debenture interests.
6. Elimination of intercompany balances of accounts receivables / payables and recognition of Goods in transit
7. Elimination of intercompany Loan balances and recognition of Cash in transit
8. Elimination of undiscounted intercompany balances of bills payable and receivables.
9, Downstream Intercompany sale of inventories and elimination of unrealised profits on unsold inventories. Margin is used.

A schedule showing the computation of Group Reserves and Non Controlling Interest as at the year end is also furnished.