On January 1, 2019, XYZ Co. issued equity instruments in exchange for 75% interest in ABC Co. On acquisition date, XYZ Co. elected to measure non-controlling interest at fair value. XYZ Co.’s management believes that the fair value of the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair value of the remaining interest. ABC Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 2019 statements of financial position of XYZ Co. and ABC Co. are summarized in the image. No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill.What amount of goodwill is presented in the consolidated statement of financial position on December 31, 2019?How much is the consolidated total assets as of December 31, 2019?How much is the non-controlling interest in the net assets of the subsidiary on December 31, 2019?How much is the consolidated retained earnings on December 31, 2019?How much is the consolidated total equity on December 31, 2019? On January 1, 2019, Turtle Co. issued equity instruments in exchange for 75% interest in TitanCo. On acquisition date, Turtle Co. elected to measure non-controlling interest at fair value.Turtle Co.'s management believes that the fair value of the consideration transferred correlatesto the fair value of the controlling interest acquired and that the fair value of the controllinginterest is proportionate to the fair value of the remaining interest.Titan Co.'s net identifiable assets have carrying amount and fair value of P300,000 andP360,000, respectively. The difference is attributable to a building with a remaining useful lifeof 6 years.The December 31, 2019 statements of financial position of Turtle Co. and Titan Co. aresummarized below:Turtle Co.Titan Co.ASSETSInvestment in subsidiary (at cost)300,000Other assets1,372,000496,000TOTAL ASSETS1,672,000496,000LIABILITIES AND EQUITYTrade and other payablesShare capitalRetained earningsTotal equityTOTAL LIABILITIES AND EQUITY292,000120,000940,000200,000440,000176,0001,380,0001,672,000376,000496,000No dividends were declared by either entity during year. There were also no inter-companytransactions and impairment in goodwill.What amount of goodwill is presented in the consolidated statement of financial positionon December 31, 2019?How much is the consolidated total assets as of December 31, 2019?How much is the non-controlling interest in the net assets of the subsidiary on December31, 2019?How much is the consolidated retained earnings on December 31, 2019?How much is the consolidated total equity on December 31, 2019?

The question is based on the concept of Consolidated Financial Statements. As per the Bartleby…

On January 1, 2019, XYZ Co. issued equity instruments in exchange for 75% interest in ABC Co. On acquisition date, XYZ Co. elected to measure non-controlling interest at fair value. XYZ Co.’s management believes that the fair value of the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair value of the remaining interest. ABC Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 2019 statements of financial position of XYZ Co. and ABC Co. are summarized in the image. No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill. What amount of goodwill is presented in the consolidated statement of financial position on December 31, 2019? How much is the consolidated total assets as of December 31, 2019? How much is the non-controlling interest in the net assets of the subsidiary on December 31, 2019? How much is the consolidated retained earnings on December 31, 2019?

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On January 1, 2019, XYZ Co. issued equity instruments in exchange for 75% interest in ABC Co. On acquisition date, XYZ Co. elected to measure non-controlling interest at fair value. XYZ Co.’s management believes that the fair value of the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair value of the remaining interest.

ABC Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years.

The December 31, 2019 statements of financial position of XYZ Co. and ABC Co. are summarized in the image.

No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill.

What amount of goodwill is presented in the consolidated statement of financial position on December 31, 2019?
How much is the consolidated total assets as of December 31, 2019?
How much is the non-controlling interest in the net assets of the subsidiary on December 31, 2019?
How much is the consolidated retained earnings on December 31, 2019?
How much is the consolidated total equity on December 31, 2019?

On January 1, 2019, Turtle Co. issued equity instruments in exchange for 75% interest in Titan
Co. On acquisition date, Turtle Co. elected to measure non-controlling interest at fair value.
Turtle Co.'s management believes that the fair value of the consideration transferred correlates
to the fair value of the controlling interest acquired and that the fair value of the controlling
interest is proportionate to the fair value of the remaining interest.
Titan Co.'s net identifiable assets have carrying amount and fair value of P300,000 and
P360,000, respectively. The difference is attributable to a building with a remaining useful life
of 6 years.
The December 31, 2019 statements of financial position of Turtle Co. and Titan Co. are
summarized below:
Turtle Co.
Titan Co.
ASSETS
Investment in subsidiary (at cost)
300,000
Other assets
1,372,000
496,000
TOTAL ASSETS
1,672,000
496,000
LIABILITIES AND EQUITY
Trade and other payables
Share capital
Retained earnings
Total equity
TOTAL LIABILITIES AND EQUITY
292,000
120,000
940,000
200,000
440,000
176,000
1,380,000
1,672,000
376,000
496,000
No dividends were declared by either entity during year. There were also no inter-company
transactions and impairment in goodwill.
What amount of goodwill is presented in the consolidated statement of financial position
on December 31, 2019?
How much is the consolidated total assets as of December 31, 2019?
How much is the non-controlling interest in the net assets of the subsidiary on December
31, 2019?
How much is the consolidated retained earnings on December 31, 2019?
How much is the consolidated total equity on December 31, 2019?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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