CONSOLIDATED STATEMENT

BUSINESS COMBINATION
FORMULAS

Chapter 16

1.) Consolidated net income

Parent net income xxx

Less: Dividends income received from Subsidiary xxx
Parent income from it's own operation xxx
Less: Impairment loss on goodwill, if any xxx
Parent adjusted net income xxx
Add: Subsidiary adjusted net income
Subsidiary reported net income xxx
+/- Amortization xxx
- impairment loss on goodwill, if any xxx
Consolidated net income xxx

2.) Income from subsidiary

Subsidiary reported net income xxx

+/- Amortization xxx
- impairment loss on goodwill, if any xxx
Subsidiary adjusted net income xxx
Multiply: Controlling interest x%
Income from subsidiary xxx

3.) Consolidated net income attributable to parent

Parent net income xxx

Less: Dividends income received from Subsidiary xxx
Parent income from it's own operation xxx
Less: Impairment loss on goodwill, if any xxx
Parent adjusted net income xxx
Add: Income from subsidiary #2 xxx
Consolidated net income attributable to parent xxx

4.) NCI in net income of Subsidiary/ Consolidated net income attributable to NCI

Subsidiary reported net income xxx

+/- Amortization xxx
- impairment loss on goodwill, if any xxx
Subsidiary adjusted net income xxx
Multiply: Noncontrolling interest x%
NCI in net income of Subsidiary xxx

5.) Consolidated retained earnings

Parent retained earnings - January 1, current year xxx

Add: Gain from acquistion, if any xxx
Consolidated net income attributable to parent - #3 xxx xxx
Total xxx
Less: Dividends declared - parent only xxx
Consolidated retained earnings - December 31, current year xxx
 Consolidated retained earnings formula if involves more the one previous year passed

Parent Reported Retained Earnings - January 1, current year xxx

Less: Impairment loss - previous year if any xxx
Parent Adjusted Retained Earnings - January 1, current year xxx
Add: Undistributed Subsidiary adjusted net income in previous year/s
Subsidiary Retained Earnings - January 1 current year xxx
Less: Subsidiary Retained Earnings - date of acquisition xxx
Undistributed Subsidiary unadjusted cumulative earnings (net income ) xxx
Less: Amortization ( cumulative amortization ) xxx Previous Year/s
Impairment of goodwill - previous year if any xxx xxx
Undistributed Subsidiary adjusted net income xxx
Less: NCI share in the income undistributed adjusted cumulative earnings xxx xxx
Consolidated Retained Earnings - January 1, current year xxx
Add: Consolidated net income attributable to parent - current year #3 xxx
Total xxx Current Year
Less: Dividends declared - parent only xxx
Consolidated Retained Earnings - ending xxx

6.) Noncontrolling interest

First Year
Noncontrolling interest - January 1, current year - computed using formula chapter 15 xxx
Add: NCI in net income of Subsidiary/Consolidated net income attributable to NCI xxx
Total xxx
Less: Dividends declared x Noncontrolling interest xxx
Noncontrolling interest - December 31 current year xxx

Note: You must noted the initial Noncontrolling interest amount on the date of acquisition. Because that is always your
beginning balances.

Computation of Noncontrolling interest more then one previous year passed

Noncontrolling interest - at the date of acquisition ( initial ) xxx

Add: NCI share in the income undistributed adjusted cumulative earnings
Subsidiary Retained Earnings - January 1 current year xxx
Less: Subsidiary Retained Earnings - date of acquisition xxx
Undistributed Subsidiary unadjusted cumulative earnings (net income ) xxx
Less: Amortization ( cumulative amortization ) xxx Previous Year/s
Impairment of goodwill - previous year if any xxx xxx
Undistributed Subsidiary adjusted net income xxx
Multiply by: Noncontrolling interest x% xxx
Noncontrolling interest - January 1, current year xxx
Add: NCI in net income of Subsidiary/Consolidated net income attributable to NCI xxx
Total xxx Current Year
Less: Dividends declared x Noncontrolling interest xxx
Noncontrolling interest - December 31 current year xxx