At 1 January 20X9 Penguin plc paid $1.2m for an 80% share in Platypus Ltd. Platypus Ltd's net assets at the date of acquisition were:
| |
$'000
|
|
Share capital
|
500
|
|
Retained earnings
|
850
|
|
Revaluation surplus
|
450
|
It is group policy is to measure non-controlling interests at acquisition at fair value. The fair value of the non-controlling interest at the date of acquisition was $400,000.
Statements of profit or loss for both companies for the year ended 31 December 20X9 were:
| |
Penguin
|
Platypus
|
| |
$'000
|
$'000
|
|
Revenue
|
12500
|
2,600
|
|
Cost of sales
|
(7400)
|
(1,090)
|
|
Gross profit
|
5100
|
1,510
|
|
Distribution costs
|
(700)
|
(220)
|
|
Administrative expenses
|
(1300)
|
(550)
|
|
Finance costs
|
(40)
|
-
|
|
Profit before tax
|
3060
|
740
|
|
Income tax expense
|
(900)
|
(230)
|
|
Profit for the year
|
2160
|
510
|
Required
Calculate the goodwill on acquisition and prepare the consolidated statement of profit or loss of the Penguin Group for the year ended 31 December 20X9.