Consolidated Statement of Profit or Loss

Question 1

W1 Group Structure

Answer 1

Parent
(Parent %) (NCI %)
Sub

Question 2

W2 PUP

Answer 2

Closing Inventory x mark up / 100 + mark up

Or

Closing Inventory x margin %

Add to Cost of Sales
IF Upstream - reduce NCI % of PUP from W3

Question 3

W3 Profit Attributable to NCI

Answer 3

NCI % of Profit After Tax
(less NCI % of impairment)
(less NCI % of PUP) - If Upstream
Add back NCI % of Finance Costs

Question 4

How do we account for mid-year acquisitions?

Answer 4

Time apportion so only proportion of the year goes to P/L

Adjust
Revenue
Cost of Sales
Operating Expenses
Taxation during the year

Question 5

What is the P/L pro-forma?

Answer 5

Revenue (100% of P and S, less IC sales)
Cost of Sales (100% of P and S, less IC sales, plus PUP)
= Gross Profit

Distribution Costs (100% of P and S)
Admin Expenses (100% of P and S plus Goodwill impairment)
= Profit from operations

Investment Income (External only)
Finance Costs (External only)
= Profit Before Tax

Income Tax Expense (100% P and S)
= Profit for the year

Other Comprehensive Income
Revaluation Gains (100% and S)
= Total Comprehensive Income

Amount Attributable to NCI (W3)
Amount Attributable to Group