The remaining life of these non-current assets is six


Hyson plc acquired 75% of the shares in Green plc on 1 January 20X0 for £6 million when Green plc"s accumulated profits were £4.5 million. At acquisition, the fair value of Green"s non-current assets were £1.2 million in excess of their carrying value.

The remaining life of these non-current assets is six years.

The summarized statements of comprehensive income for the year ended 31.12.X0 were as follows:

Particulars Hyson '000 Green '000 Revenue 23,500 6,400

Cost of sales 16,400 4,700

Gross profit 7,100 1,700

Expenses 4,650 1,240

Profit before tax 2,450 460

Income tax expense 740 140

Profit for the period 1,710 320

There were no inter-company transactions.

Depreciation of non-current assets is charged to cost of sales.

Required: Prepare a consolidated statement of comprehensive income for the year ended 31 December 20X0.

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Business Management: The remaining life of these non-current assets is six
Reference No:- TGS01702258

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