1. Consolidation Patronic Statement of Profit or Loss ACCA June 2008

2. Copy out the question PSAdjustmentsConsolidated Revenue 15000078000 CofS (94000)(51000) Distribution (7400)(3000) Admin (12500)(6000) Finance (2000)(900) Tax (10400)(3600) 2370013500

3. Consolidation Format- Goodwill  What did we pay? What did we get?  Date 1 August 2007  Acquired 18m shares, =75%  Issued 12m  Paid 12m x 5.75= 69m  Cash 2 x18m = 36m  Total paid $105m

4. Consolidation Format- Goodwill  Paid $105m + NCIs $30.5m = $135.5m  Received  Shares 24m  Retained earnings, py = 69m  Retained earnings, cy = 13.5m x 4/12= 4.5  Fair value adjustments = $6.5m (note 1)  Goodwill = 31.5m on acquisition

5. PSAdjustmentsConsolidated Revenue 15000052000 (10000)192000 CofS (94000)(34000) (200) (500) 10000 (400) (119100) Distribution (7400)(2000) (9400) Admin (12500)(4000) (2000)(18500) Finance (2000)(600) (2400)(5000) Tax (10400)(2400) (12800) Associate1800 237009000 29000

6. Consolidation Format- Cost of Sales  P = 94000  S= 34000  Intra group (10000)  Property (FV) 200  Plant (2400 x 8/48)= 400  Inventory (3000 x 20/120)= 500 Total 119100

7. Consolidation Format- NCI Share Per P&L 13500x8/12x25% 2250 Depreciation 600x25%x8/12 (150) Share of impairment 2000x25% (500) Total 1600