corporateaccounting课件Chapter20ConsolidationIntragroup幻灯片.pptVIP

LO7: Prepare worksheet entries for intragroup borrowings (p. 1012). * * * Intragroup dividends What if A only owned 60% of B? Assume B declared a dividend of $100 (in total) out of post acquisition profits Journal Entry in B Journal Entry in A DR Div declared 100 DR Cash 60 CR Cash 100 CR Div. revenue 60 Journal Entry on consolidation DR Div. revenue 60 CR Div. declared 60 * * * LO1: Explain the need for making adjustments for intragroup transactions (p. 992) * Tax consolidation system = groups comprising a parent and its wholly owned subsidiaries can elect to consolidate and be treated as a single entity for tax purposes Such entities prepare a consolidated tax return, and the effects of intragroup transactions are eliminated * LO2: Prepare worksheet entries for intragroup transactions involving profits and losses in beginning and ending inventory (p. 994) * * Highlight that the $15 ITE / CTL entry is not recorded (one entry is recorded after the completion of the tax worksheet) The entry is provided to highlight that ITE and CTL will be $15 higher in the accounts of the subsidiary due to this sale * * This entry eliminates the $15 ITE arising in the accounts of the subsidiary from the recognition of the sale * * * Highlight that the $15 ITE / CTL entry is not recorded (one entry is recorded after the completion of the tax worksheet) The entry is provided to highlight that ITE and CTL will be $15 higher in the accounts of the subsidiary due to this sale * * * * * Recall the entries from slide * Recall the entries from slide * LO3: Prepare worksheet entries for intragroup transactions involving profits and losses on the transfer of property, plant and equipment in both the current and previous periods (p. 1001) * ITE for 2016 is (60 – 10) x 30% = 15 * * Group ITE for 2016 = (0-10) x 30% = -$3 * * * * LO4: Prepare worksheet entries for intragroup transactions involving transfers from inventory to property, pla