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?

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.

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?

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)

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)

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?

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)

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)

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)

Pearl Co has controlled an 80% owned subsidiary, Silver Co, for many years. Silver Co sold goods to Pearl Co for $120,000 at a mark-up of 20% during the year.

Pearl Co had sold half of these goods by the year end.

Which of the following statements regarding intra-group transactions in the consolidated financial statements are true or false?
(1) Revenue must be reduced by a total of $120,000
(2) Cost of sales must be reduced by a total of $110,000
(3) Non-controlling interest must be reduced by $2,000

Hillusion Co acquired 80% of Skeptik Co on 1 July 20X2. In the post-acquisition period Hillusion Co sold goods to Skeptik Co at a price of $12 million. These goods had cost Hillusion Co $9 million. During the year to 31 March 20X3 Skeptik Co had sold $10 million (at cost to Skeptik Co) of these goods for $15 million.

How will this affect group cost of sales in the consolidated statement of profit or loss of Hillusion Co for the year ended 31 March 20X3?

On 1 July 20X7, Spider Co acquired 60% of the equity share capital of Fly Co and on that date made a $10 million loan to Fly Co at a rate of 8% per annum.

What will be the effect on group retained earnings at the year-end date of 31 December 20X7 when this intragroup transaction is cancelled?

Basil Co acquired 60% of Parsley Co on 1 March 20X9. In September 20X9 Basil Co sold $46,000 worth of goods to Parsley Co. Basil Co applies a 30% mark-up to all its sales. 25% of these goods were still held in inventory by Parsley Co at the end of the year.

An extract from the draft statements of profit or loss of Basil Co and Parsley Co at 31 December 20X9 is:

All revenue and costs arise evenly throughout the year.

What will be shown as gross profit in the consolidated statement of profit or loss of Basil Co for the year ended 31 December 20X9?

Wiley Co acquired 80% of Coyote Co on 1 January 20X8. At the date of acquisition Coyote Co had a building which had a fair value $22 million and a carrying amount of $20 million. The remaining useful life of the building was 20 years.

Coyote Co's profit for the year to 30 June 20X8 was $1.6 million which accrued evenly throughout the year.

Wiley Co measures non-controlling interest at fair value. At 30 June 20X8 it estimated that goodwill in Coyote Co was impaired by $500,000.

What is the total comprehensive income attributable to the non-controlling interest at 30 June 20X8?