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 | 21,000 | 9,600 |
| COST OF SALES | 10,500 | 5,760 |
| GROSS PROFIT | 10,500 | 3,840 |
| OPERATING EXPENSES | 7,350 | 2,304 |
| PROFIT BEFORE TAX | 3,150 | 1,536 |
| TAX | 630 | 307 |
| PROFIT | 2,520 | 1,229 |
During the year Jessica Co sold goods costing $3,600 to Patpost Co for $5,400. 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 | 21,000 | 9,600 | (5,400) | 25,200 |
| COST OF SALES | 10,500 | 5,760 | Derived | 11,760 |
| GROSS PROFIT | 10,500 | 3,840 | (900) | 13,440 |
| OPERATING EXPENSES | 7,350 | 2,304 | 9,654 | |
| PROFIT BEFORE TAX | 3,150 | 1,536 | 3,786 | |
| TAX | 630 | 307 | 937 | |
| PROFIT | 2,520 | 1,229 | 2,849 |
| PATPOST PROFIT | 1,229 |
| NCI SHARE 25% | 307 |
| JESSICA SHARE 75% | 922 |
| JESSICA's Own profit | 2,520 |
| JESSICA's unrealized profit | (900) |
| PROFIT ATTRIBUTABLE TO JESSICA | 2,542 |
To do the same topic again in ACCA F3 New Consolidated Account 2