1. Consolidation Pedantic
Statement of Profit or Loss
ACCA December 2008

2. Copy out the question P S
Adjustments
Consolidated
Revenue
85000
21000
CofS
(63000)
(16000)
Distribution
(2000)
(1000)
Admin
(6000)
(1600)
Finance
(300)
(200)
Tax
(4700)
(700)

3. Copy out the question P S
Adjustments
Consolidated
PPE
40600
12600
CAs
16000
6600
Equity Shares
10000
4000
RetEarns
35400
6500
10% Loan Notes
3000
CLs
8200
4700

4. Consolidation Format- Goodwill
What did we pay? What did we get?
Date 1 April 2008, 6 months
Acquired 2400 shares, =60%
Issued 1600
Paid 1600 x 6= 9600
Total paid 9600

5. Consolidation Format- Goodwill
Paid $ NCIs $5900 = $15500
Received
Shares 4000
Retained earnings, py = 3500
Retained earnings, cy = 1500
Fair value adjustments = 2000
Goodwill = 4500 on acquisition

6. Net Assets S
Acq
Reporting Date
Post Acq
Shares
4000
Ret earn
5000
6500
1500
Plant
2000
Depn
(200)
Profit
(800)

7. Group Retained Earnings
35400
S 500 x 60%
300
NCI
Acq
5900
500x 40%
200

8. Revenue 85000 21000 (8000) 98000 CofS (63000) (16000) 8000 (800) (200)P S
Adjustments
Consolidated
Revenue
85000
21000
(8000)
98000
CofS
(63000)
(16000)
8000 (800) (200)
(72000)
Distribution
(2000)
(1000)
(3000)
Admin
(6000)
(1600)
(7600)
Finance
(300)
(200)
(500)
Tax
(4700)
(700)
(5400)

9. P S Adjustments Consolidated PPE 40600 12600 2000 (200) 55000 Goodwill
4500
CAs
16000
6600
(800) (600) 200
21400
Equity Shares
10000
4000
(4000)1600
11600
Share Premium
8000
RetEarns
35400
6500
(5000)
36900
NCIs
6100
10% Loan Notes
3000
7000
CLs
8200
4700
(400)
12500