CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Below are the statements of profit or loss and other comprehensive income of Tyson, its subsidiary Douglas and associate Frank at 31 December 20X8. Tyson, Douglas and Frank are public limited companies.
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Tyson
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Douglas
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Frank
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$m
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$m
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$m
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Revenue
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500
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150
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70
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Cost of sales
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(270)
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(80)
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(30)
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Gross profit
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230
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70
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40
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Other expenses
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(150)
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(20)
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(15)
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Finance income
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15
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10
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-
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Finance costs
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(20)
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-
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(10)
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Profit before tax
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75
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60
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15
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Income tax expense
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(25)
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(15)
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(5)
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PROFIT FOR THE YEAR
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50
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45
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10
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Other comprehensive income:
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Gains on property revaluation, net of tax
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20
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10
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5
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR
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70
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55
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15
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You are also given the following information:
1) Tyson acquired 80m shares in Douglas for $188m three years ago when Douglas had a credit balance on its reserves of $40m. Douglas has 100m $1 ordinary shares.
2) Tyson acquired 40m shares in Frank for $60m two years ago when that company had a credit balance on its reserves of $20m. Frank has 100m $1 ordinary shares.
3) During the year Douglas sold some goods to Tyson for $66m (cost $48m). None of the goods had been sold by the year end.
4) Group policy is to measure non-controlling interests at acquisition at fair value. The fair value of the noncontrolling interests in Douglas at acquisition was $40m. An impairment test carried out at the year end resulted in $15m of the recognised goodwill relating to Douglas being written off and recognition of impairment losses of $2.4m relating to the investment in Frank.
Required
Prepare the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 20X8 for Tyson, incorporating its associate.
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PROFORMA SOLUTION
TYSON GROUP - CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 20X8
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$m
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Revenue
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Cost of sales
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Gross profit
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Other expenses
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Finance income
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Finance costs
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Share of profit of associate
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Profit before tax
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Income tax expense
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PROFIT FOR THE YEAR
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Other comprehensive income:
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Gains on property revaluation, net of tax
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Share of other comprehensive income of associates
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Other comprehensive income for the year, net of tax
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR
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Profit attributable to:
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Owners of the parent
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Non-controlling interests
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Total comprehensive income attributable to:
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Owners of the parent
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Non-controlling interests
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Workings
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1) Group structure
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2) Non-controlling interests
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PFY
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TCI
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$m
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$m
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PFY/TCI per question
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Unrealised profit (W3)
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Impairment loss
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x NCI share
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3) Unrealised profit
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$m
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Selling price
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Cost
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Provision for unrealised profit
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