F2 - 4. Group P&L + SOCIE

Question 1

What is the general rule for combining the group statement of profit or loss?

Answer 1

Parent P&L + Sub P&L (100%, regardless of % ownership) - Adjustments

Question 2

What are the 3 adjustments to be considered when consolidated the group statement of financial position?

Answer 2

1. Dividends
2. Non controlling interest
3. Intragroup trading

Question 3

How are dividends paid between group members treated in the consolidated statement of financial position?

Answer 3

IGNORED

Question 4

What is the amount of profit of the subsidiary split out to the NCI at year end?

Answer 4

Sub’s profit x NCI %

Question 5

What is the amount of other comprehensive income of the subsidiary split out to the NCI at year end?

Answer 5

Sub’s OCI x NCI %

Question 6

What is the adjustment to remove any intragroup sale from the consolidated statement of profit or loss?

Answer 6

DR Group Revenue

CR Group COS

Question 7

If the selling company has inventory remaining in its books at year end, what other adjustment is needed for an intragroup sale in the consolidated statement of profit or loss?

Answer 7

Dr Cost of Sales (by PUP amount)
Cr Inventories (SFP)

> > Increase COS, decrease inventories

Question 8

For mid year acquisitions, how are profits of the subsidiary treated in the consolidated statement of profit or loss?

Answer 8

Add on the proportion of income/expenses since acquisition to group retained earnings

Question 9

What is the purpose of the statement of changes in equity?

Answer 9

Reconciles the opening and closing consolidated statements of financial position

Question 10

What 4 main movements are seen in the SOCIE?

Answer 10

1. Share Issues
2. Profit
3. Revaluations
4. Dividends paid outside the group