FR-Ch-19 (Consolidation SOPL)

Brim has owned 100% of the issued share capital of Stone for many years. Brim sells goods to Stone at cost plus 20%. The companies’ revenues for the year were:

(1)Brim (1) $460,000

(2) Stone (2) $120,000

During the year Brim sold goods to Stone for $60,000, of which $18,000 were still held in inventory by Stone at the year end.

• 4. $520,000

• 1. $530,000

• 1. $538,000

• 1. $562,000

Orwell is the sole subsidiary of George. The cost of sales figures for 20X1 for George and Orwell were $11m and $10m respectively. During 20X1 George sold goods which had cost $2m to Orwell for $3m. Orwell has not yet sold any of these goods.
What is the consolidated cost of sales figure for 20X1?

• 1. $16m

• 1. $18m

• 1. $19m

• 1. $20m

he following figures related to Sanderstead and its subsidiary Croydon for the year ended 31 December 20X9:

SandersteadCroydon$$Revenue600,000300,000Cost of sales(400,000)(200,000)Gross profit200,000100,000

During the year Sanderstead sold goods to Croydon for $20,000, making a profit of $5,000. These goods were all sold by Croydon before the year end.

Match the correct amounts for revenue and gross profit in the consolidated statement of profit and loss of Sanderstead for the year ended 31 December 20X9.

• Revenue

  $880,000

  Gross profit

  $300,000

• Revenue

  $881,000

  Gross profit

  $310,000

• Revenue

  $884,000

  Gross profit

  $303,000

• Revenue

  $882,000

  Gross profit

  $302,000

Cooper owns 80% of Essen. Essen sells goods to Cooper at cost plus 50%. The total invoiced sales to Cooper by Essen in the year ended 31 December 20X1 were $900,000 and, of these sales, goods which had been invoiced at $60,000 were held in inventory by Cooper at 31 December 20X1.

What is the adjustment for unrealised profit in the consolidated profit or loss for the year ended 31 December 20X1?

• 4. $20,000

• 1. $24,000

• 1. $30,000

• 1. $40,000

Cherry owned 75% of Plum. For the year ended 31 December 20X1 Plum reported a net profit of $118,000. During 20X1 Plum sold goods to Cherry for $36,000 at cost plus 50%. At the year-end these goods are still held by Cherry.

What is the non-controlling interest in the consolidated statement of profit or loss for the year ended 31 December 20X1? (Answer in $ in the Answer box)

• $26500.

• $25500.

• $26510.

• $26600.

Hot owns 80% of the issued share capital of Warm and 40% of the issued share capital of Cold. In the individual company financial statements the tax charges for the year are:

$

(1) Hot (1)40,000

(2)Warm (2)36,000

(3) Cold (3)20,000

What is the tax charge in the consolidated statement of profit or loss? (Answer in $ in the Answer box)

• $76000.

• $75000.

• $73000.

• $67000.

Cornish Co purchased 80% of Pasty Co a number of years ago for $164,000. During the year ended 31 December 20X6 Cornish Co disposed of its entire investment in Pasty Co for $275,000. On disposal, the net assets of Pasty Co were measured at $186,000 and non-controlling interest amounted to $37,000. Goodwill remaining at the disposal date, in respect of the purchase, was $29,000.

What is the profit on disposal which will be recorded in Cornish Co’s CONSOLIDATED statement of profit or loss for the year ended 31 December 20X6?

• $97,000.

• $96,000.

• $98,000

• $99,000.

Paprika Co purchased 75% of the equity share capital of Salt Co on 30 April 20X4. Non-controlling interests are measured at fair value.

The following additional information is provided:

1. (1) Salt Co had machinery included in its net assets at acquisition with a carrying amount of $120,000 but a fair value of $200,000. The machinery had a remaining useful life of eight years at the date of acquisition. All depreciation is charged to cost of sales.

2. (2) During the year, Salt Co sold some goods to Paprika Co for $32,000 at a margin of 25%. Three-quarters of these goods remained in inventory at the year end.

What is the cost of sales in Paprika Co’s consolidated statement of profit or loss for the year ended 30 April 20X6? (Answer in $ in the Answer box)

• $144000.

• $145000.

• $146000.

• $148000.

Alpha Co acquired 80% of the ordinary share capital of Bravo Co on 1 September 20X4 and 40% of the ordinary share capital of Charlie Co a number of years ago

On 30 November 20X4, Alpha Co sold goods to Bravo Co making a profit of $2,000. Half of these items remained in inventory at the year end.

The profit for the year ended 31 December 20X4 for each company is:
What is the amount of profit attributable to the equity shareholders of Alpha Co in the consolidated statement of profit or loss for the year ended 31 December 20X4? (Answer in $ in the Answer box)

• $127760.

• $128760.

• $127769

• $127960.

On 1 July 20X5, Pull Co acquired 80% of the equity of Sat Co. At the date of acquisition, goodwill was valued at $10,000 and the non-controlling interest was measured at fair value.

In conducting the fair value exercise on Sat Co’s net assets at acquisition, Pull Co concluded that property, plant and equipment with a remaining life of ten years had a fair value of $300,000 in excess of its carrying amount. Sat Co had not incorporated this fair value adjustment into its individual financial statements. At the reporting date of 31 December 20X5, the goodwill was fully impaired. For the year ended 31 December 20X5, Sat Co reported a profit for the year of $200,000.

What is the Pull Group profit for the year ended 31 December 20X5 that is attributable to non-controlling interests? (Answer in $ in the Answer box)

• $15000.

• $16000.

• $17000.

• $18000.