Consolidation problematic

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Leo
Posts: 537
Joined: 05 Apr 2020, 22:31

Consolidation problematic

Post by Leo »

Hi everyone,

I'm struggling with a case that I really can't find the solution. I'd really need your help!

At 31/12/2019, Mother has 75% of Child A and 100% of Child B.

Statutory of Mother :
Shares in Child A 75% 317K€
Shares in Child B 100% 35K€

Capital : -352K€

Statutory of Child A :
Cash : 6 367K€
Capital : -6 367K€

Statutory of Child B :
Cash : 35K€
Capital : -35K€

Consolidation statements of Mother :
Cash : 6 402K€
Capital : -352K€
Reserves : - 4458K€
NCI : - 1592K€
Leo
Posts: 537
Joined: 05 Apr 2020, 22:31

Re: Consolidation problematic

Post by Leo »

on 02/01/2020, Mother has received Child C from another group, thus, Mother has restructured the group as follows:

Mother owns Child B for 50%, and Child B owns Child A for 100% also, Child B owns Child C at 75%. (Mother has control over all the entities, full consolidation method)

Previously, on 01/01/2020, Mother has capitalized Child B for 7 688K€.

The statutory statements of Mother after all these operations are :
Shares in Child B : 8 040K€
Capital : - 352K€
Debt : -7688K€

Statutory of CHild B is :
Cash : 7688K€
Shares of CHild A 100% : 316K€
Shares of child C 75% : 3396K€
Capital : -11400K€

Statutory of Child A :
Cash : 6 367K€
Capital : - 6367K€

Statutory of Child C :
Cash : 17934K€
Capital : 17934K€

The consolidation statements of the group is :
Cash : 31 989
Capital : - 352K€
Reserves : - 5713K€
NCI : -18 236K€
Debt : - 7688K€
Last edited by Leo on 15 Apr 2021, 08:23, edited 1 time in total.
Leo
Posts: 537
Joined: 05 Apr 2020, 22:31

Re: Consolidation problematic

Post by Leo »

As you could see, Reseves should be at ZERO, because I have to make an accounting entry, Bidwill/Goodwill to neutralize it. But I don't know how to calculate it !!!

I'm very very sorry for the question but really can't find another solution other than share it with you.

Thank you very much for your help please !
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Marek Muc
Site Admin
Posts: 2115
Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland
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Re: Consolidation problematic

Post by Marek Muc »

You are much more likely to get an answer if you spend your time and effort on framing your question succinctly instead of flooding us with numbers. And if you really really have to show numbers to illustrate your point, use simple round figures like 100, 50, 20 etc.
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