Company A and Company C are two companies from different groups. On January 10, 2014, Company A acquired 60% of the equity of Company B held by Company C using intangible assets (patent rights) as the merger consideration. The book value of Company A's intangible assets is 51 million yuan (assuming that amortization and impairment are both 0), and the fair value is 60 million yuan. Company A and Company B both withdraw 10% of their net profits to statutory surplus reserve, and both have an income tax rate of 25%. The book value of Company B’s owners’ equity (equal to its fair value) on the date of purchase is 96 million yuan, of which 25 million yuan is share capital, 56 million yuan is capital reserve, 5 million yuan is surplus reserve, and 10 million yuan is undistributed profit. .
(1) The transactions or events that occurred between Company A and Company B in 2014 are as follows:
On June 30, 2014, Company B purchased from Company A for a price of 4.32 million yuan. The company purchased a piece of management equipment, which was received and put into use on the same day. The original price of this equipment in Company A was 7 million yuan. Its estimated service life is 10 years. Its estimated net residual value is zero. It has been used for two years. Depreciation is calculated using the straight-line method. There is no provision for impairment of this equipment. Any indication of impairment. Company B estimates that the equipment can be used for 8 years and the net residual value is expected to be zero, so it still uses the straight-line method to calculate depreciation.
In 2014, Company A sold 100 pieces of Product A to Company B. Each piece sold for 50,000 yuan, and each piece cost 30,000 yuan. No provision for inventory depreciation was made. In 2014, Company B sold 40 pieces of Product A purchased from Company A, and the rest formed ending inventory. At the end of 2014, the net realizable value of the remaining inventory was 2.8 million yuan.
In 2014, Company B achieved a net profit of 30 million yuan. Due to changes in the fair value of available-for-sale financial assets, other comprehensive income increased by 10 million yuan (assuming that the impact of income tax has been taken into account). Apart from this, no other events occurred in Company B that resulted in changes in owner's equity.
(2) In addition, on April 1, 2014, Company A purchased the shares of Company D with a bank deposit of 20 million yuan and paid an additional 100,000 yuan in directly related taxes. The shares held by Company A account for 20% of the voting shares of Company D, which has a significant influence on Company D and is prepared to hold the shares for a long time.
On April 1, 2014, the fair value of Ding Company’s identifiable net assets (equal to its book value) was 100.5 million yuan.
In July 2014, Company D sold Product C to Company A for a price of 6 million yuan and a cost of 4 million yuan. Company A manages this batch of C commodities as inventory. As of December 31, 2014, Company A had sold 40% of this batch of goods.
In 2014, Company Ding achieved a net profit of 7 million yuan (of which the net profit from January to March was 1 million yuan).
(3) The transactions or events that occurred between Company A and Company B in 2015 are as follows:
In 2015, Company A sold 50 pieces of Product B to Company B, and each piece sold The price is 80,000 yuan, and the price has been deposited in the bank. Product B costs 60,000 yuan per piece, and no provision for inventory decline has been made. In 2015, Company B sold 30 pieces of product A and 40 pieces of product B, and the rest formed the ending inventory.
At the end of 2015, Company B conducted an inventory inspection and found that due to the continued decline in market prices, the net realizable value of product A and product B in inventory dropped to 1 million yuan and 400,000 yuan respectively.
In 2015, Company B paid cash dividends of 15 million yuan and realized a net profit of 21.68 million yuan.
(4) In 2015, Company A sold all C commodities purchased from Company D to external parties.
Requirements:
(1) Make the accounting treatment of long-term equity investment on the purchase date.
(2) Calculate the goodwill of the business combination.
(3) Prepare the accounting entries for Company A’s long-term equity investment in Company D in 2014.
(4) Prepare adjustments and offsetting entries for Company A’s consolidated financial statements of Company B on December 31, 2014 (do not consider the offsets of transactions with associates, do not consider the consolidated cash flow statement, consolidated Relevant offsetting entries in the statement of changes in owner's equity).
(5) Prepare adjustments and offsetting entries for Company A’s consolidated financial statements of Company B on December 31, 2015 (relevant offsetting entries for the consolidated cash flow statement and consolidated statement of changes in owners’ equity are not considered record). (The amount in the answer is expressed in ten thousand yuan)
Answer:
2014
1. Obtain 60% of the equity of Company B in individual statements:
Offset of investments and equity on the purchase date:
Consolidated goodwill = 6000-9600*60%=240
3. Offset of fixed assets:
< p> Book value of fixed assets from the collective perspective = 700-700/10×2 = 560Book value from Company B’s perspective = 432
Offsetting unrealized internal transaction gains and losses:
Supplementary depreciation:
Confirmation of deferred income tax:
Tax basis = Continuous calculation based on Company B’s recorded cost = 432-432/8×6/12=405 < /p>
Book value = from the group’s perspective, calculated based on the cost before sale = 700-700/10×1.5=525
Book value of assets 525> Tax basis 405
Taxable temporary differences=525-405=120
Deferred income tax liabilities=120×25%=30
4. Internal inventory A offset:
Assuming the offset of all sales:
Offset of unrealized internal transaction gains and losses:
40 pieces were sold externally, and 60 pieces were unrealized.
Offset the unrecognized inventory impairment:
The balance cost from the group’s perspective = 3×60 pieces = 1.8 million, the balance cost from Company B’s perspective = 5×60 pieces = 3 million, at the end of the period The net realizable value is 2.8 million, so from the perspective of Company B, an impairment provision of 20 (300-280) is made. However, from the perspective of the group, no impairment has occurred, so the impairment provision by Company B must be offset.
Confirm deferred income tax at the consolidated statement level:
First consider the deferred income tax recognized in Company B’s individual statements, tax basis = closing cost of Company B’s acquisition = 5× 60 pieces = 300, book value = 300-20 = 280, book value of inventory < tax basis, deductible temporary differences 20 will occur, and deferred income tax assets 5 (20 × 25%) will be recognized.
Next, consider how much deferred income tax the group thinks should exist. The tax calculation basis is the same from the perspective of consolidated statements and individual statements. The tax law always recognizes that the accounting cost of the purchaser is the basis for continuous calculation, so it is still 300, the book value from the group's perspective is 180 (3×60), the book value is < tax basis, the deductible temporary difference is 120, and the deferred income tax asset is 30 (120×25%)
Now put B The company's individual statements and the group perspective are considered together. The individual statements recognize deferred income tax assets of 5, while the group believes that deferred income tax assets of 30 should be recognized, so the deferred income tax assets of 25 need to be recognized from the perspective of the consolidated statements.
5. Conversion from cost method to equity method:
The investee achieved a net profit of 30 million:
The investee increased other comprehensive income by 1,000 due to availability:
6. Offset of investment and equity at the end of the year:
7. Offset of investment income and recognition of minority shareholders’ gains and losses:
2015
8. Continuously offset internal fixed assets:
Re-offset the relevant entries of the previous year:
Note that in the second year, all the profit and loss accounts of the previous year were transferred to the unused balance at the end of the year. Profit is distributed, so the "undistributed profit - beginning of the year" needs to be adjusted currently.
Entry to offset the continuing impact of the current year:
Additional depreciation for the current year:
Recognition of deferred income tax for the current year:
Current calculation Tax basis = 432-432/8 × 1.5 = 351, book value at the consolidated level = 700-700/10 × 3.5 = 455, taxable temporary differences = 455-351 = 104, and the temporary differences found in the year decreased by 16 (120- 104), so the deferred income tax liability is reversed 4 (16×25%)
9. Continuously offset internal inventory A:
Re-offset the previous year:
< p> Offset the unrealized gains and losses from internal transactions in the previous year:Offset the unrecognized impairment in the previous year:
Recognize deferred income tax assets in the previous year:
Offset Unrealized profits and losses from internal transactions during the year:
Offsetting the transfer-out of unrecognized price decreases:
Since Company B sold another 30 units of Product A in 2015, it carried forward the sales At the same time, the cost must be transferred out the corresponding inventory depreciation reserves. Company B's individual statement made a provision for inventory depreciation of 200,000 for 60 pieces of A products at the end of the year. This year, 30 units were sold externally, so the transferred inventory depreciation reserves are 10 (20/60× 30).
Then consider the group's perspective. The group believed that the inventory was not impaired at the end of the previous year, so it believed that the impairment of 20 did not exist. Then the inventory devaluation provisions transferred out by Company B this year were also considered to be non-existent. Company B transferred out The entry for depreciation is: Debit: Inventory depreciation reserve 10, Credit: Operating cost 10, so the following offsetting entry must be made on the consolidation working paper to offset it:
Offset the impairment of the current year:
p>The current balance cost from the perspective of Company B = 5 × 30 pieces = 150, the balance cost from the perspective of the group = 3 × 30 pieces = 90, and the net realizable value is 1 million.
Therefore, Company B’s inventory depreciation reserve balance is 50 (150-100), and the group believes that there is no impairment, so it must offset the balance of inventory depreciation reserves to 0.
But it should be noted that 500,000 is the balance of inventory depreciation reserve on Company B's individual statement at the end of the year, not the actual amount, so now we need to consider how much depreciation provision was made by Company B that year, then we Let’s reason about it. At the beginning of this period, the depreciation credit was 200,000. During the year, 30 units were sold and a depreciation of 100,000 was transferred. Now the balance at the end of the year is determined to be 50, so the amount incurred in this period = 50-20 + 10 = 40. Here I say this It may not be very clear, but it will be clear if you draw the T-shaped account for inventory depreciation reserve according to my idea. Now it is confirmed that Company B made a provision for price decrease of 400,000 that year, so the provision of 400,000 will be offset in the consolidated statement.
Let’s take a look at the overall progress. Last year, Company B accrued a 20% decrease in price, which was offset in the consolidated statement. The 10% decrease in price transferred out this year was also offset in the consolidated statement. This year The provision of 400,000 is also offset in the consolidated statement. This is equivalent to the individual statement being 20-140=50, and the consolidated offset is -210-40=-50, so the positive and negative offset, reflected in The price drop on the consolidated statement is 0.
Consider the continuous impact of deferred income tax:
The idea here is more complicated. I hope everyone can slowly follow my idea. First, consider the individual statement perspective, and then the previous year's individual The statement confirms the deferred income tax assets of 5, and then due to the depreciation of the current year, 10 is transferred out, so the deferred income tax assets are transferred back to 2.5 (10×25%) at the same time, and the depreciation of the current year is 40, so the deferred income tax assets increase by 10 (40×25%). %), the current balance of deferred income tax assets on the individual statements is 5-2.5+10=12.5
Then let’s focus on the group perspective, the current tax calculation basis = Company B’s recorded value balance = 5×30=150 , book value from the group’s perspective = 3×30=90, book value < tax basis, deductible temporary difference 60, deferred income tax balance from the group’s perspective = 60×25%=15
Now Company B Considering the individual statements and the group perspective together, the balance of Company B's deferred income tax assets is 12.5, while the group perspective believes that the balance should be 15. There is a difference of 2.5 (15-12.5). However, please note that if the adjustment is increased by 2.5, This is not correct, because it must be considered that 25% of deferred income tax assets were recognized in the previous year in the consolidated statements, so 25% must be reduced by 22.5% to increase 2.5% of deferred income tax assets in the consolidated statements. Therefore, the following entries must be made:
In this way, the current situation is as follows: deferred income tax assets of 125,000 are entered in individual statements, deferred income tax assets of 25,000 are recognized in the consolidated working paper last year, and deferred income tax assets of 25,000 are recognized in the current year. Deferred tax assets are -22.5, so the amount finally imported into the consolidated statements is 12.5+25-22.5=15, which is exactly consistent with the angle recognized by the group.
10. Offsetting internal inventory B:
Offsetting unrecognized impairment:
40 of 50 units were sold to external parties in the year, and 10 units were still in balance. The balance cost from the perspective of Company B = 8 × 10 = 80, the balance cost from the group’s perspective = 6 × 10 = 60, and the net realizable value is 40, so Company B makes an impairment provision of 40, but the group only considers the impairment to be 20, so the consolidated working paper Offset the penalty by 20.
Then consider the deferred income tax. The deductible temporary differences existing in Company B’s individual statements are 40 (tax calculation 80, book value 40), and the current book value from the group’s perspective is also equal to the net realizable value. Therefore, it is also believed that there are deductible temporary differences40, so the individual statements are consistent with the group's perspective, and the consolidated statements do not need to be adjusted.
11. Conversion of cost to equity:
Achieved net profit of 21.68 million for the year:
Declared a cash dividend of 1,500:
Investment and equity Offset:
Offset investment income and recognize minority shareholders’ gains and losses: