20 14 Certified Public Accountant Examination Course "Accounting" Chapter XXIV Business Combination Section III The contents of business combination under different control are as follows:
After an enterprise holds the investment of a subsidiary, it sells part of its equity, but after the sale, it still retains the control right of the investee, and the investee is still a subsidiary. The transaction of selling equity shall be handled separately from the individual financial statements and consolidated financial statements of the parent company:
1. From the individual financial statements of the parent company, it should be regarded as the disposal of long-term equity investment, and the relevant disposal gains and losses should be confirmed, that is, the difference between the fair value of the price or consideration obtained from the sale of equity and the book value of the disposed investment should be included in the individual income statement of the parent company as investment income or investment loss.
2. In the consolidated statements, the parent company can still control the investee after selling part of the equity, and the investee should be included in the consolidated financial statements. The difference between the price obtained from the disposal of long-term equity investment and the net assets of subsidiaries corresponding to the disposal of long-term equity investment shall be included in the rights and interests of users. If the balance of capital reserve is insufficient to be offset, the retained earnings shall be adjusted.
2. According to the above provisions, it can be seen that when the disposal part deals with the investment of subsidiaries without losing control, the gains and losses are normally recognized in individual statements, and the gains and losses are not recognized in the consolidated statements, which does not affect the goodwill. Since the goodwill is required to remain unchanged, the investment income should be the price of the disposal of part of the equity MINUS the identifiable net assets of the original assets without goodwill.
In other words, the investment income = 2600-8600 * 0.25+(8600-9800 * 0.8) * 0.25 = 6.4 million yuan. Because it is necessary to adjust the income that individual statements fail to confirm by 6.5438+0.9 million yuan in the consolidated statements, the investment income will be increased by 6.5438+0.9 million yuan, that is, the credit of investment income will be increased by 6.5438+0.9 million yuan.
Extended data
Accounting treatment of business combination under different control
20 14 Certified Public Accountant Examination Course "Accounting" Subject Chapter XXIV Business Combination Section III Contents of Business Combination Not under Common Control The accounting treatment provisions for business combination not under common control are as follows:
For the preparation of consolidated financial statements on the purchase date of a holding merger not under the same control, the offset entries on the purchase date are as follows:
Borrow: share capital
Contributed surplus
Excess function
undistributed profits
Goodwill (Debit Balance)
Loan: long-term equity investment
minority shareholders' equity
Excess function
Undistributed profit (credit difference)