Advanced reporting
Consolidation worksheet
Combine parent and subsidiary, eliminate the investment and compute goodwill and NCI.
Aldmere Holdings acquires Brook Valley Foods · 1 January 2026
Aldmere pays cash for a controlling interest. Set the terms of the acquisition; goodwill and non-controlling interests follow IFRS 3.32, and the worksheet adds the two statements of financial position line by line before eliminating the investment.
| Consideration transferred | 330,000 |
| Non-controlling interests (20%) 20% × 360,000 | 72,000 |
| Subtotal | 402,000 |
| Share capital | 100,000 |
| Retained earnings at acquisition | 220,000 |
| Fair value adjustment | 40,000 |
| Less: fair value of identifiable net assets | (360,000) |
| Goodwill | 42,000 |
Goodwill 42,000; NCI 72,000. Aldmere owns 80%.
Consolidation adjustments
| Date | Account | Debit | Credit |
|---|---|---|---|
| 1 Jan | 1500Property, plant and equipment | 40,000.00 | |
| 3300Fair value adjustment (Brook Valley) | 40,000.00 | ||
| (1) Bring Brook Valley's PPE to fair value at acquisition (deferred tax on the uplift ignored here; IAS 12.19 would require it) | |||
| 1 Jan | 3000Share capital (Brook Valley) | 100,000.00 | |
| 3100Retained earnings (Brook Valley, at acquisition) | 220,000.00 | ||
| 3300Fair value adjustment (Brook Valley) | 40,000.00 | ||
| 1620Goodwill | 42,000.00 | ||
| 1440Investment in Brook Valley (parent) | 330,000.00 | ||
| 3400Non-controlling interests | 72,000.00 | ||
| (2) Eliminate the investment against Brook Valley's equity at acquisition; recognise goodwill and NCI | |||
| Line | Aldmere (parent) | Brook Valley (subsidiary) | Adj. (1) fair value | Adj. (2) investment | Consolidated |
|---|---|---|---|---|---|
| Assets | |||||
| Property, plant and equipment | 620,000 | 260,000 | 40,000 | – | 920,000 |
| Goodwill | – | – | – | 42,000 | 42,000 |
| Investment in Brook Valley | 330,000 | – | – | (330,000) | – |
| Inventory | 140,000 | 70,000 | – | – | 210,000 |
| Trade receivables | 110,000 | 55,000 | – | – | 165,000 |
| Cash | 190,000 | 25,000 | – | – | 215,000 |
| Total assets | 1,390,000 | 410,000 | 40,000 | (288,000) | 1,552,000 |
| Equity and liabilities | |||||
| Share capital | 500,000 | 100,000 | – | (100,000) | 500,000 |
| Retained earnings | 580,000 | 220,000 | – | (220,000) | 580,000 |
| Fair value adjustment (at acquisition) | – | – | 40,000 | (40,000) | – |
| Non-controlling interests | – | – | – | 72,000 | 72,000 |
| Trade and other payables | 310,000 | 90,000 | – | – | 400,000 |
| Total equity and liabilities | 1,390,000 | 410,000 | 40,000 | (288,000) | 1,552,000 |
The consolidated statement balances: total assets 1,552,000 equal equity and liabilities. The investment and Brook Valley's share capital and pre-acquisition retained earnings no longer appear; goodwill and NCI do.
Adjustment columns are shown with presentation signs: a positive figure increases the line, a figure in brackets reduces it.
Learn it properly
- The consolidation worksheet · Intermediate and Advanced Financial Reporting
More advanced reporting simulators
All companies and figures in the simulators are fictional.