Revenue

Cost of sales
Gross profit
Distribion expenses
Administration expenses
Finance cost
Profit before Tax
Income Tax 30%
Profit for the year

Emlcerson Plc
TZS 000
10,050.00
(6,700.00)
3,350.00
(550.00)
(350.00)
(50.00)
2,400.00
(720.00)
1,680.00

FTC Ltd
TZS 1000
3,300.00
(2,200.00)
1,100.00
(275.00)
(125.00)
(10.00)
690.00
(207.00)
483.00

Revenue
Cost of sales
Gross profit
Distribion expenses
Administration expenses
Finance cost
Profit before Tax
Income Tax 30%
Profit for the year

Step 1

Identfy Group structure

Parent
Subsidiary
% of acquisition
Non Controlling Interest

Emlcerson Plc
10,050.00
(6,700.00)
3,350.00
(550.00)
(350.00)
(50.00)
2,400.00
(720.00)
1,680.00

FTC Ltd
3,300.00
(2,200.00)
1,100.00
(275.00)
(125.00)
(10.00)
690.00
(207.00)
483.00

Emerson Plc
FTC ltd
100%
0%
100%

Step 2

Identify acquisition date

31-Mar-15

Step 3

Identify FV Net Asset at acquision date

Share capital
XX
Share premium
XX
Pre-acqiun RE
XX
FV Adjustments
XX
Contigent liabilities
XX
OCE
XX
Total
xx

Step 4

Compute fair value of cossideration

Cash
Share exchange
Issue of shares
Contigent consideration
Deffered consideration
Total

Step 5

Compute goodwill
Fair value of consideration given to accquire net assets
Fair value of NCI at acquision date
FV of net assets of acquired entity
Goodwill

ict:
Acquision was done at the
beginning of accounting p
no apportionment of reve
and expenses is required

to acquire Net Assets

XX
xx
xx
xx
xx
xx

xx
xx
(xx)
xx

Step 6

Adjust Profit figures

To be discussed

Step 7

Compute group retained earnings and NCI to SFP & P/L

Step 8

Prepare consolidated financial statements

Emerson Group
13,350.00
(8,900.00)
4,450.00
(825.00)
(475.00)
(60.00)
3,090.00
(927.00)
2,163.00

ict:
Acquision was done at the
beginning of accounting period,
no apportionment of revenue
and expenses is required

Revenue
Cost of sales
Gross profit
Distribion expenses
Administration expenses
Dividend reveIced from FTC
Profit before Tax
Income Tax 30%
Profit for the year
Prfit attributable to
Parent(Balancing figure)
Non controlling interest(Step 7)
Profit for the year
Step 1
Identfy Group structure
Parent
Subsidiary
% of acquisition
Non Controlling Interest

Emlcerson Plc
10,050.00
(6,700.00)
3,350.00
(550.00)
(350.00)
(50.00)
2,400.00
(720.00)
1,680.00

Emerson Plc
FTC ltd
80%
20%
100%

Step 2

Identify acquisition date

Step 3

Identify FV Net Asset at acquision date

Share capital
XX
Share premium
XX
Pre-acqiun RE
XX
FV Adjustments
XX
Contigent liabilities
XX
OCE
XX
Total
xx

Step 4

Step 5

FTC Ltd
3,300.00
(2,200.00)
1,100.00
(275.00)
(125.00)
(10.00)
690.00
(207.00)
483.00

31-Dec-14

Compute fair value of cossideration to acquire Net Assets

Cash
XX
Share exchange
xx
Issue of shares
xx
Contigent consideration
xx
Deffered consideration
xx
Total
xx

Compute goodwill
Fair value of consideration given to accquire net assets
Fair value of NCI at acquision date

ict:
Acquision was done at the
beginning of accounting
period, no apportionment
revenue and expenses is
required

FV of net assets of acquired entity

Goodwill

Step 6

Adjust Profit figures

To be discussed

Step 7

Compute group retained earnings and NCI to SFP & P/L

Emerson
Profit as per P/L
1,680.00
Dividend received from subsidiary
PURS(Parent is a seller)
PURP(subsidiary is a seller)
Adjustment for depreciation
Impairment of goodwill
etc
Adjusted profit
1,680.00
FTC profit atributable to NCI (483X20%)

Step 8

Prepare consolidated financial statements

FTC ltd @75%

2,475.00
(1,650.00)
825.00
(206.25)
(93.75)
(7.50)
517.50
(155.25)
362.25

Emerson Group
12,525.00
(8,350.00)
4,175.00
(756.25)
(443.75)
(57.50)
2,917.50
(875.25)
2,042.25
1,945.65
96.60
2,042.25

ict:
Acquision was done at the
beginning of accounting
period, no apportionment of
revenue and expenses is
required

xx
xx

120.75

120.75

(xx)
xx

FTC
483.00

483.00
96.60

Revenue
Cost of sales
Gross profit
Distribion expenses
Administration expenses
Impairment of goodwill
Dividend reveIced-Ordinary shares
Dividend reveIced-preference shares
Profit before Tax
Income Tax 30%
Profit for the year
Prfit attributable to
Parent(Balancing figure)
Non controlling interest(Step 7)
Profit for the year
Step 1
Identfy Group structure
Parent
Subsidiary
% of acquisition
Non Controlling Interest

Emlcerson Plc
Emerson Adjustments
200,000.00 200,000-9,000x(1+1/3)
(60,000.00) 9000x0.5x1/3
140,000.00
(50,000.00)
(9,082.00)
3,750.00 3,750-3750
600.00 600-600
85,268.00
(14,004.00)
71,264.00

Emerson Plc
FTC ltd
75%
25%
100%

Step 2

Identify acquisition date

Step 3

Identify FV Net Asset at acquision date

Share capital
XX
Share premium
XX
Pre-acqiun RE
XX
FV Adjustments
XX
Contigent liabilities
XX
OCE
XX
Total
xx

Step 4

Compute fair value of cossideration

Cash
Share exchange
Issue of shares
Contigent consideration
Deffered consideration
Total

31-Dec-14

to acquire Net Assets

XX
xx
xx
xx
xx
xx

(17,850.00)

ict:
Acquision was done at the
beginning of accounting perio
apportionment of revenue and
expenses is required

Step 5

Step 6

Step 7

Compute goodwill
Fair value of consideration given to accquire net assets
Fair value of NCI at acquision date
FV of net assets of acquired entity
Goodwill at acquision date
Imairment if goodwill (IAS 36)
Goodwill at reporting date
Adjust Profit figures
To be discussed
Compute group retained earnings and NCI to SFP & P/L
Profit as per P/L
Dividend received from subsidiary
PURS(Parent is a seller)
PURP(subsidiary is a seller)
Adjustment for depreciation
Impairment of goodwill
etc
Adjusted profit
FTC profit atributable to NCI (24,000X20%)

Step 8

Prepare consolidated financial statements

9,000*0.5*1/3

188,000.00
(61,500.00)
126,500.00
(50,000.00)
(9,082.00)

FTC Ltd
FTC Ltd Adjusted
120,000.00
(60,000.00) 120,000-9,000x(1+1/3)
60,000.00
(30,000.00)
(10,000.00)

120,000.00
(48,000.00)
72,000.00
(30,000.00)
(10,000.00)
(2,000.00)

67,418.00
(14,004.00)
53,414.00

ict:
Acquision was done at the
beginning of accounting period, no
apportionment of revenue and
expenses is required

20,000.00
(6,000.00)
14,000.00

10,000.00

30,000.00
(6,000.00)
24,000.00

10,000X20%

Emerson
71,264.00

(17,850.00)
53,414.00

FTC ltd @75%

90,000.00
(45,000.00)
45,000.00
(22,500.00)
(7,500.00)
-

15,000.00
(4,500.00)
10,500.00

Emerson Group
308,000.00
(109,500.00)
198,500.00
(80,000.00)
(19,082.00)
(2,000.00)
97,418.00
(20,004.00)
77,414.00
71,914.00
5,500.00
77,414.00

xx
xx
(xx)
xx

FTC
14,000.00

10,000.00
24,000.00
5,500.00

10,000
(2,000)
8,000