MATERI PRAKTIKUM AKUNTANSI KEUANGAN LANJUTAN FATA 2016

LAB 7
INTERCOMPANY PROFIT TRANSACTION – PLANT ASSETS

 Intercompany Profit Transactions (IPT) on Plant Assets terbagi menjadi dua yaitu :
1. IPT on non-depreciable plant assets
Ex : IPT pada land

Workpaper entries untuk IPT land :

 Pada saat terjadinya IPT non-depreciable plant assets
 To eliminate unrealized gain and to reduce land to a cost basis
Gain on sale of Land xxx
Land xxx

 Pada tahun berikutnya ketika plant asset dari IPT belum terjual ke pihak luar
 To reduce land to its cost basis and adjust the investment account pada saat land
masih terdapat di dalam entitas di tahun berikutnya
Downstream:
Investment in Sub xxx
Land xxx
Upstream:
Investment in Sub xxx
Non Controlling Interest xxx
Land xxx

 Pada saat plant asset terjual ke pihak luar

 To adjust gain on land to the gain consolidated entity
Downstream :
Investment in Sub xxx
Gain on sale of land xxx
Upstream :
Investment in Sub xxx
Noncontrolling interest xxx
Gain on sale of land xxx

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2. IPT on depreciable plant assets

Ex : IPT pada equipment, building, etc
- Jurnal eliminasi pada saat terjadi IPT pada depreciable plant asset sama dengan non
depreciable plant assets.
- Pengakuan profit pada IPT depreciable plant assets dilakukan secara bertahap melalui
mekanisme depresiasi karena adanya perbedaan pengakuan jumlah depresiasi per tahun
untuk parent dan subsidiary (Piecemeal recognition).
- Penghitungan piecemeal recognition
 Asumsi useful life dan metode depresiasi sama antara parent dan subsidiary
𝐺𝑎𝑖𝑛 𝑜𝑟 𝐿𝑜𝑠𝑠
Piecemeal =
𝑈𝑠𝑒𝑓𝑢𝑙 𝐿𝑖𝑓𝑒

 Asumsi useful life dan metode depresiasi berbeda

Penambahan atau pengurangan piecemeal disesuaikan dengan jumlah depresiasi
parent

Workpaper entries untuk IPT depreciable plant assets

 Pada saat terjadinya IPT depreciable plant assets
 To eliminate unrealized gain on sale depreciable plant assets and to reduce
depreciable plant assets to a cost basis
Gain on sale of Plant assets xxx
Plant Assets xxx
 To eliminate current year depreciation on unrealized gain
Equipment-net/Accumulated Depreciation xxx
Depreciation expense/other expense xxx

 Pada tahun berikutnya ketika plant asset dari IPT belum terjual ke pihak luar atau
belum habis umur ekonomisnya
 To eliminate current year depreciation on unrealized gain
Equipment-net/Accumulated Depreciation xxx
Depreciation expense/other expense xxx
 To reduce plant asset to its cost basis and adjust the investment account
Investment in Sub xxx
Accumulated Depreciation-plant asset xxx
Plant Assets xxx

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MATERI PRAKTIKUM AKUNTANSI KEUANGAN LANJUTAN FATA 2016

 Pada saat plant asset terjual ke pihak luar

Investment in Sub xxx
Accumulated Depreciation-plant asset xxx
Gain on sale of plant asset xxx

3. Contoh Soal
Mar Corporation acquired 90% interest of Cut Corporation on January 1, 2018 at excess of
150,000. The excess was allocated to goodwill. Below are separate financial statements for
Mar and Cut for 2019. (in thousand dollars)
Mar Cut
Combined Income and Retained Earnings Statement for
the year ended December 31, 2019
Sales 900 300
Income from Cut 93 -
Gain on sale of equipment 27 -
Cost of Sales (420) (150)
Operating expenses (180) (30)
Net Income 420 120
Beginning retained earnings 471 210
Dividends (180) (60)
Ending Retained Earnings 711 270
Statement of Financial Position at December 31, 2019
Cash 450 51
Account Receivable 270 150
Dividend Receivable 27 -
Inventories 60 24
Land 120 45
Building-net 405 150
Equipment-net 345 180
Investment in Cut 474 -
Total Assets 2,151 600
Account Payable 294 90
Dividend Payable 45 30
Other Liabilities 201 60
Capital Stock 900 150
Retained Earnings 711 270
Total Liabilities and Equities 2,151 600

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Additional information:
1. Mar sold inventory items to Cut during 2018 and 2019 as follows: (in thousand $)
2018 2019
Sales 90 60
Cost of Sales 45 30
Unrealized Profit at Dec 31 15 12

2. Mar sold land that cost $21,000 to Cut for $30,000 during 2018. The land is still owned
by Cut.
3. In January 2019, Mar sold equipment with book value of $63,000 to Cut for $90,000.
The equipment is being depreciated by Cut over a three-year period using straight-line
method.
4. All of Mar’s dividend receivable comes from Cut.

Instruction:
Prepare a consolidation workpaper for Mar Corporation and subsidiary for the year ended
December 31, 2019!

Answer:
1. Income Calculation (in $000)
NCI Share
CI Share (90%)
(10%)
Cut’s reported income ($120,000) 108 12
Add:
Unrealized profit in Cut’s beginning inventory 15 -
Piecemeal recognition of deferral profit in 9 -
equipment
Less:
Unrealized profit in Cut’s ending inventory (12) -
Unrealized gain on sale of equipment (27) -
Income from Cut 93 12

*Unrealized gain on sale of land tidak mempengaruhi income from karena IPT of land
terjadi pada tahun 2018

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2. Investment Calculation (in $000)

CI (90%) NCI (10%)
Underlying BV equity of Cut (150 + 270) 378 42
Add : Goodwill 135 15
Less:
Unrealized profit in Cut’s ending inventory (12)
Unrealized profit on intercompany sale of (18)
equipment
Unrealized profit on intercompany sale of land (9)
Investment in Cut Dec 31, 2019 474 57

3. Workingpaper journal entries (in $000)

a. To eliminate intercompany cost of sales and sales
Sales 60
Cost of Sales 60
b. To eliminate unrealized profit from ending inventory
Cost of Sales 12
Inventory 12
c. To adjust cost of sales and the beginning investment balance for unrealized profit in
beginning inventory
Investment in Cut 15
Cost of Sales 15
d. To reduce land to its cost basis and adjust the investment account
Investment in Cut 9
Land 9
e. To eliminate gain on intercompany sales of equipment and reduce equipment to a cost
basis
Gain on sale of Equipment 27
Equipment-net 27
f. To eliminate current year depreciation of unrealized gain of equipment
Equipment-net 9
Operating Expense 9
g. To eliminate investment income & dividend from Cut
Income from Cut 93
Dividend 54
Investment in Cut 39

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h. To enter NCI Share, NCI, and eliminate dividend

NCI Share 12
Dividend 6
NCI 6
i. To eliminate reciprocal investment and equity balance and record beginning NCI
Capital Stock 150
Retained Earnings 210
Goodwill 150
Investment in Cut (90%) 459
NCI (10%) 51
j. To eliminate reciprocal payable and receivable for intercompany dividend
Dividend payable 27
Dividend Receivable 27

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Mar Corp. and Subsidiary

Consolidation Workpapers
for the year ended December 31, 2019 (in thousands)

Adjusting & Eliminating Consolidated

Mar Cut
Statement
Dr Cr
Income Statement
Sales 900 300 a 60 1140
Income from Cut 93 g 93 0
Gain on sale of equipment 27 e 27 0
Cost of Sales 420 150 b 12 a 60 507
c 15
Operating expenses 180 30 f 9 201
Consolidated Net Income 420 120 432
NCI Share h 12 12
CI Share of Net Income 420

Retained Earnings Statement

Beginning retained earnings 471 210 i 210 471
CI Share of Net Income 420 120 420
Dividends 180 60 g 54 180
h 6
Retained Earnings December 31, 2019 711 270 711

Statement of Financial Position at December 31, 2019

Cash 450 51 501
Account Receivable 270 150 420
Dividend Receivable 27 j 27 0
Inventories 60 24 b 12 72
Land 120 45 d 9 156
Building-net 405 150 555
Equipment-net 345 180 f 9 e 27 507
Investment in Cut 474 c 15 g 39 0
d 9 i 459
Goodwill i 150 150
Total Assets 2.151 600 2361
Account Payable 294 90 384
Dividend Payable 45 30 j 27 48
Other Liabilities 201 60 261
Capital Stock 900 150 i 150 900
Retained Earnings 711 270 711

NCI Beginning i 51 51
NCI Ending h 6 6

Total Liabilities and Equities 2.151 600 2361

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