Semi Elim
Semi Elim
Eliminating entries
To allocate the excess of cost over book value of identifiable assets acquired, with
remainder to goodwill and to establish non-controlling interest (in net assets of subsidiary) on
date of acquisition
To provide for current year impairment loss and depreciation and amortization on
differences of BV and FV of S identifiable assets and liabilities.
To defer the upstream sales – unrealized profit in ending inventory until it is sold to
outsiders
Land 50,000
Subsequent years
Eliminating entries
To establish reciprocity
*RE beginning of current yr less RE at acquisition date (+) increase, (-), decrease
To allocate the excess of cost over book value of identifiable assets acquired, with
remainder to goodwill and to establish non-controlling interest (in net assets of subsidiary) on
date of acquisition (SAME AMOUNTS WITH FIRST YEAR)
(E4) Retained earnings – Parent Company beginning (previous year amorti x CI%) 17,000
To provide for current year impairment loss and depreciation and amortization on
differences of BV and FV of S identifiable assets and liabilities.
To defer the upstream sales – unrealized profit n ending inventory until it is sold to
outsiders (current year)
Land 50,000
Non-controlling interest xx
*Unrealized gain less realized gain since the date of intercompany sale
*Unrealized gain less realized gain since the date of intercompany sale