www.kaplanpublishing.co.uk Section Introducing the group statement of profit or loss and other comprehensive income Question Penguin The following represents extracts from the statements of profit or loss for the financial year where the parent acquired 60% of the shares in the subsidiary six months ago Revenue Cost of sales Profit for the year Parent $ 400,000 (200,000) Subsidiary $ 300,000 (150,000) 100,000 50,000 In preparing group accounts consolidation adjustments are required including depreciation of $10,000 arising due a fair value adjustment on PPE and an impairment loss on full goodwill of $4,000 Both the additional depreciation and the impairment loss are to be charged to cost of sales In addition one month prior to the reporting date the parent sold goods to the subsidiary for $50,000 at a margin of 20% and at the reporting date only one quarter had been sold on Required Calculate the following figures a) the group revenue, b) the group cost of sales, and c) the profit for the year attributable to the NCI A student's guide to Group Accounts by Tom Clendon, Second Edition, published by Kaplan Publishing www.kaplanpublishing.co.uk Section Introducing the group statement of profit or loss and other comprehensive income Question Ostrich The following represents extracts from the statements of profit or loss and other comprehensive income for the financial year where the parent acquired 75% of the shares in the subsidiary six months ago Parent $ Subsidiary $ 400,000 (200,000) 200,000 (100,000) Profit for the year 100,000 50,000 Other comprehensive income Revaluation gain 300,000 10,000 Statement of profit or loss Revenue Cost of sales In preparing group accounts consolidation adjustments are required including depreciation of $20,000 arising due a fair value adjustment on PPE and an impairment loss on full goodwill of $8,000 Both the additional depreciation and the impairment loss are to be charged to cost of sales In addition one month prior to the reporting date the subsidiary sold goods to the parent for $60,000 at a mark-up of 50% and at the reporting date only one quarter had been sold on The revaluation gain of the subsidiary wholly arose in the post-acquisition period Required Calculate the following figures a) the group revenue, b) the group cost of sales, c) the profit for the year attributable to the NCI and, d) the total comprehensive income attributable to the NCI A student's guide to Group Accounts by Tom Clendon, Second Edition, published by Kaplan Publishing ... Introducing the group statement of profit or loss and other comprehensive income Question Ostrich The following represents extracts from the statements of profit or loss and other comprehensive income... $ 400,000 (200,000) 200,000 (100,000) Profit for the year 100,000 50,000 Other comprehensive income Revaluation gain 300,000 10,000 Statement of profit or loss Revenue Cost of sales In preparing... due a fair value adjustment on PPE and an impairment loss on full goodwill of $8,000 Both the additional depreciation and the impairment loss are to be charged to cost of sales In addition one