Study Hub SECTION C
Study Hub SECTION C
Study Hub SECTION C
Year's Profit
Draft profit for the year 112,200
Derecognised contract - 1,800
Depreciation expense - 47,100
Gain on investment property 1,000
Irrecoverable debt - 2,500
Tax expense - 12,200
Adjusted profit for the year 49,600
Assets
Non-current assets
Property 180,000
Plant 144,400
Investment property 13,500
Current assets
Inventory 90,000
Trade receivables 40,400
Cash 3,800
Total assets 472,100
Equity and liablities
Equity
Share capital 250,000
Share premium 40,000
Revaluation surplus 22,800
Retained earnings 44,900
Liabilities
Non-current liablities
Deferred tax 21,200
Current liablities 93,200
Total equity and liablities 472,100
Notes:
Note 1
Revenue - 7,800
Cost of sales - 6,000
Profit - 1,800
Inventory 6,000
Receivables - 7,800
Note 2
b/f CA Depreciation
Land 20,000 -
Building 165,000 11,000
Plant 180,500 36,100
Note 3
CA b/f Gain
Investment Property 12,500 1,000
Note 4
Receivables - 4,000
Irrecoverable debt 2,500
Retained earnings - 4,000
Note 5
Increase in Deferred tax 2,000
deferred tax on revaluation 1,200
Note 6
Tax estimate 11,400
Increase in Deferred tax 2,000
deferred tax on revaluation 1,200
Tax expense for the year 12,200
Dr Cash 60,000
Cr Share capital 50,000
Cr Share premium 10,000
Note 8
Dividend paid 15,500
6,000 20,000
160,000
- 144,400
CA c/f
13500
Revaluation surplus Retained earnings Total equity
18,000 12,300 260,300
60,000
49,600 49,600
- 15,500 - 15,500
- 1,500
6,000 6,000
- 1,200 - 1,200
22,800 44,900 357,700
Consolidated Statement of Financial Positi (W1)Group Structure
on Name Label
Assets Petrel Co Parent
Non-current assets Storm Co Subsidiary
3,425
(W6)-Cost of investment in A
Initial cost 9,000
Share of A's post-acq profit 1,500
10,500
Consideration Paid
% holding Acq period Share for share exchange 9,000 Shares issued
Cash paid 3,750 Share capital
1 Full year Total consideration 12,750 Share premium
0 Full year
Professional Costs 500
4,000 -
8,900 2,900 Notes:
1,000 -
100 100 Note 1
- 300 - 300 RE at acq 6,000
13,700 2,700 Fair value adjustment 1,000
Note 2
With transfer Without transfer
Note 3
Intra-group sales 2,700
PUP of Subsidiary 300
Inventory - 300
Note 4
NCI at acq 2,750
Note 6
Financial asset investments 9,000
Gain 2,500
1,500
1,500
7,500
Consolidated statement of Profit or Loss (W1)-Group Structure
Name Label
Revenue 270000 Pandar Co Parent
Cost of Sales 162500 Salva Co Subsidiary
Gross Profit 107500 Ambra Co Associate
Distribution costs 14700
Admin expenses 22800 (W2)-Net assets of Sub
Investment income 1100 Acquisition
Finance costs 2300 Share capital 120000
Share of loss of Associate 4000 Retained earnings 163500
Profit before tax 64800 Fair value adjustments 25000
Income tax expense 20000 308500
Profit for the year 44800
(W3)-Goodwill
Profit attributable to: Consideration paid 345600
Parent 43000 NCI at acq 76800
NCI 1800 Net assets of Sub 308500
Goodwill at acq 113900
Note 1
Fair value adjustment of plant 5000
Extra depreciation 500 COS
Note 2
Finance cost -2000
Investment income -2000
Note 3
Dividend 6400
Investment income -6400
Note 4
Intra-group sales 15000
PUP of parent 1000
Note 5
NCI at acquistion 76800
Note 6
Impairment of investment in A 3000