CONS5 - Adjustments and eliminations and transactions between group
companies
Formulate the appropriate adjustments and eliminations to obtain the
Consolidated Statements corresponding to Companies 1, 2 and 3 at 31
December of Year X7, taking into account the following.
- Company 1 is the parent company of the group it forms with Company 2.
Company 3 is not part of the group, but company 1 has significant influence
over it. Company 1 owns, respectively, 70% and 60% of the shares of 2 and 3,
acquired in X1 for CU3,000 and CU800.
- The information on the equity of companies 2 and 3 is as follows (as at the
date of acquisition of the shares and current consolidation):
Company 2 Company 3
01-01-X1 31-12-X7 01-01-X2 31-12-X7
Share capital 5,000 5,000 800 800
Reserves 600 400 100 500
Information on transactions between companies 1 and 2:
1. In the financial year X7, 1 bought goods worth 200 um from 2 at an inclusive
profit of 10% of the cost price. At the end of the year, there are goods left in A's
warehouse for 20 um and 150 um of the transaction remains outstanding.
2. In 20X6 company 1 sold to company 2 a plot of land for 580, the acquisition
value of which was 600. At the end of the financial year X7 there is 100 um
outstanding on the transaction.
