chapter 9 (3) Total comprehensive income is then split as being attributable to parent shareholders and NCI shareholders. The amount attributable to NCI shareholders will be the profit for the year attributable to the NCI {already calculated) plus/ minus the NCI share of the total exchange gain/ loss. Total comprehensive income attributable to parent shareholders can be calculated as a balancing figure, Consolidated statement of changes in equity (1) Add the comprehensive income from the statement of comprehensive income split between parent and NCI shareholders. (2) Deduct any dividends paid by the parent and the NCI share of any subsidiary dividends. (3) Prepare a working in the subsidiary's functional currency for its net assets at the brought forward date i.e. similar to CSFP W2 but at the prior reporting date (4) Calculate NCI brought forward in a similar way to CSFP W4 i.e. in the functional currency and then translating at the opening rate. (5) Calculate equity attributable to parent shareholders brought forward in a similar way to CSFP W5 adding the parent's share capital. Remember to translate the subsidiary's post acquisition profits (up to the brought forward date) at the opening rate. You will need to recalculate the foreign exchange gain/ loss on the cost of investment by comparing it at the acquisition rate to the opening rate. Test your understanding 4 - Paul and Simon Paul is an entity whose functional and presentational currency is the dollar ($). On 1 January 20X7, Paul acquired 80% of the share capital of Simon, an entity whose functional currency is the Franc. Simon's reserves at this date showed a balance of Fr4,000. Paul paid Fr21,000 for the investment in Simon. Below are the financial statements of Paul and Simon for the year ended 31 December 20X8 345Foreign currency translation le ‘Statements of financial position Paul Simon $ Fr Non-current assets 60,000 25,000 Investment in Simon 4,200 Current assets 35,800 15,000 100,000 40,000 Equity Share capital 50,000 15,000 Reserves 20,000 14,000 70,000 29,000 Current liabilities 30,000 11,000 100,000 40,000 ‘Statements of comprehensive income Paul Simon $ Fr Revenue 25,000 10,000 Operating expenses (10,000) (4,000) Operating profit 15,000 6,000 Finance costs (5,000) (1,500) Profit before tax 10,000 4,500 Tax (3,000) (1,000) Profit after tax 7,000 3,500 Other comprehensive income - - Total comprehensive income 7,000 3,500 SJ. TW ~~’ 346 AINEchapter 9 lM ‘Statements of changes in equity Simon Fr Equity brought forward 25,500 Comprehensive income 1,500 Dividends paid - Equity carried forward 29,000 Exchanges rates have been as follows: Fest 1 January 20X7 5 31 December 20X7 3 31 December 20X8 2 Average for the year ended 31 December 20X8 25 Itis Paul's policy to apply the gross goodwill method. As at 1 January 20X7, the fair value of the non-controlling interest in Simon was deemed to be Fr4,500. Goodwill had been reviewed for impairment as at 31 December 20X7 but none had arisen. As at 31 December 20X8, it was determined that goodwill should be impaired by Fr1,000. Required: Prepare the consolidated statement of financial position, consolidated statement of comprehensive income and consolidated statement of changes in equity for the year ended 31 December 20X8. “eAPLAN PUBLISHING say