6.6 Consolidted statement of comprehensive income

Question 1

What is the purpose of the consolidated statement of comprehensive income (a.k.a. profit and loss)?

Answer 1

To present the financial performance of a group of companies in a single statement.

Question 2

What adjustments are made when consolidating statements of comprehensive income?

Answer 2

• intra-group sales and purchases are eliminated

- net profits attributable to NCIs are split according to the amounts attributable to the equity holders

Question 3

What are the key steps for consolidation of group statements of profit and loss?

Answer 3

1 Combine line-by-line
2 Eliminate intra-group sales and purchases
3 Eliminate unrealized profit or loss from intra-group trading
4 Profit and comprehensive income attributed to: (1) owners of the parents and (2) non-controlling interest
5 Disclose NCI at foot of income statement