Jessica Co acquired 75% of the share capital of Patpost Co on 1 January2014. The summarised draft statements of profit or loss for the two companies for the year ended 31 December 2014 are shown below:
| JESSICA | PATPOST | |
| REVENUE | 16,800 | 7,200 |
| COST OF SALES | 8,400 | 4,320 |
| GROSS PROFIT | 8,400 | 2,880 |
| OPERATING EXPENSES | 5,880 | 1,728 |
| PROFIT BEFORE TAX | 2,520 | 1,152 |
| TAX | 504 | 230 |
| PROFIT | 2,016 | 922 |
During the year Jessica Co sold goods costing $800 to Patpost Co for $1,200. At the year end 50% of these goods remained in Patpost Co’s inventory.
Required:
(a) Prepare the Jessica Group's consolidated statement of profit or loss for the year ended 31 December 2014.
(b)The profit attributable to the equity owners of Jessica amounted to $?
SUGGESTED SOLUTIONS
| JESSICA | PATPOST | ADJUSTMENT | CONSOLIDATED | |
| REVENUE | 16,800 | 7,200 | (1,200) | 22,800 |
| COST OF SALES | 8,400 | 4,320 | Derived | 11,720 |
| GROSS PROFIT | 8,400 | 2,880 | (200) | 11,080 |
| OPERATING EXPENSES | 5,880 | 1,728 | 7,608 | |
| PROFIT BEFORE TAX | 2,520 | 1,152 | 3,472 | |
| TAX | 504 | 230 | 734 | |
| PROFIT | 2,016 | 922 | 2,738 |
| PATPOST PROFIT | 922 |
| NCI SHARE 25% | 231 |
| JESSICA SHARE 75% | 692 |
| JESSICA's Own profit | 2,016 |
| JESSICA's unrealized profit | (200) |
| PROFIT ATTRIBUTABLE TO JESSICA | 2,508 |
To do the same topic again in ACCA F3 New Consolidated Account 2