Preparing a Consolidated Statement of Comprehensive Income

Chapter 19 - Exercises 19.1 To 19.4
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Chapter 19 - Exercises 19.1 To 19.4
19.1
19.1 PP Ltd acquired 65% of the ordinary share capital of QQ Ltd on 1 January 2019. There are no preference shares. The statements of comprehensive income of the two companies for the year to 31 December 2019 are as follows:
Consolidated statement of comprehensive income for year 31 December 2019

PP Ltd


£

Sales revenue

531,800

Cost of sales

197,690

Gross profit

334,110

Operating expenses

94,130

Profit before tax

239,980

Taxation

46,660

Profit for the year

193,320

Attributable to non-controlling interest (35% x 61, 900)

21,665

Attributable to the group

171,655

19.2
FF Ltd acquired 80% of the ordinary share capital of GG Ltd on 1 April 2016. On that date, the retained earnings of GG Ltd were £18,260. There are no preference shares. The statements of comprehensive income of FF Ltd and GG Ltd for the year to 31 March 2020 are as follows:
(a) Prepare a consolidated statement of comprehensive income for the year to 31 March 2020, assuming that there are no impairment losses in relation to goodwill.


FF Ltd



£

Sales revenue

(359,800 +154,600- £10,000)

504,400

Cost of sales

(102,600+ 55,550- £10,000+1,000)

149,150




Gross profit

(257,200 +99,050)

355,250

Operating expenses

(118,480 +19,300)

137,780




Operating profit

(138,720 +79,750)

217,470

Dividends received

(28,000

28,000




Profit before tax

(166,720 +79,750)

245,470

Taxation

(32,000 +16,000)

48,000




Profit for the year

(134,720 +63,750)

197,470

Attributable to non-controlling interest (20%* 63,750)


12,750

Attributable to the group


184,720

(b) Prepare an extract from the consolidated statement of changes in equity for the year to 31 March 2020, showing the changes in the group's r...