Analysis of Equity - Topic Notes PDF

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Summary

Subsidiary is the seller! 1. Introduction ALWAYS work with an Analysis of Equity! Practice drawing it up as quickly as possible NB! Transfer figures to your final answer as soon as calculated them all marks earned on the AOE but not presented in your final answer will be divided 4! The Analysis of E...

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1. Introduction    

ALWAYS work with an Analysis of Equity! Practice drawing it up as quickly as possible NB! Transfer figures to your final answer as soon as you’ve calculated them – all marks earned on the AOE but not presented in your final answer will be divided by 4! The Analysis of Equity is integral for: o General Journal entries o The Statement of Changes in Equity

2. Basic Template Total

P (80%) since

@

NCI (20%)

@ Ord Share Cap Retained Earn. Since Retained Earn. CY PFY

3. Calculating the Amounts 

Don’t forget the following items when calculating Since Acquisition - Retained Earnings : OB less @ RE less Unrealised Profit in Opening Inventory (net of tax) less Unrealised Profit from PPE (after realization; net of tax)



Don’t forget the following items when calculating Current Year – Profit for the Year : Profit add Unrealised Profit in Opening Inventory (net of tax) → decreases COS less Unrealised Profit in Closing Inventory (net of tax) → increases COS add Excess depreciation (net of tax) 1...