CAF-07
Consolidation
Lecture # 12
Lecture # 77 (Over all)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Classwork
Question-1
P bought 75% of S several years ago. The income statements for year to 31.12.2010 are as follows.
P
S
Rs.
Rs.
Revenue
400
200
Cost of sales
(250)
(100)
Gross profit
150
100
Administrative expenses
(20)
(15)
Profit
130
85
Required:
Prepare consolidated statement of comprehensive income for the year ending 31st December, 2010.
Question-2
The summarized trial balances of P Ltd (PL) and S Ltd (SL) as at 31 December 2015 are as follows:
P Ltd (PL)
Debit
Credit
Sales
Cost of sales
Operating expense
Tax expense
Share capital (Rs. 10 each)
Retained earnings as at 1 January 2015
Current liabilities
Property, plant and equipment
Cost of investment
Current assets
S Ltd (SL)
Debit
Credit
------------- Rs. In million ------------835
645
525
396
115
102
65
48
600
250
265
179
115
105
285
518
700
125
115
1,815
1,815
1,179
1,179
Additional information:
(i) On 1 Jan 2015, PL acquired 80% shares of SL.
(ii) Other inter-company transactions during the year 2015 were as follows:
Included in buyer’s
closing stock-in-trade
------------ Rs. In million -----------60
20
30
5
Sales
PL to SL
SL to PL
Profit %
25% of cost
20% of sales
(iii) The non-controlling interest is measured at the proportionate share of SL’s identifiable net assets.
Required: Prepare consolidated statement of comprehensive income for the year ended 31 December
2015 and consolidated statement of financial position as at 31 December 2015.
Homework
Past paper Q.2
Adnan Rauf, FCA
Page 1