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 | 8,400 | 2,400 |
| COST OF SALES | 4,200 | 1,440 |
| GROSS PROFIT | 4,200 | 960 |
| OPERATING EXPENSES | 2,940 | 576 |
| PROFIT BEFORE TAX | 1,260 | 384 |
| TAX | 252 | 77 |
| PROFIT | 1,008 | 307 |
During the year Jessica Co sold goods costing $3,200 to Patpost Co for $4,800. 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 | 8,400 | 2,400 | (4,800) | 6,000 |
| COST OF SALES | 4,200 | 1,440 | Derived | 1,640 |
| GROSS PROFIT | 4,200 | 960 | (800) | 4,360 |
| OPERATING EXPENSES | 2,940 | 576 | 3,516 | |
| PROFIT BEFORE TAX | 1,260 | 384 | 844 | |
| TAX | 252 | 77 | 329 | |
| PROFIT | 1,008 | 307 | 515 |
| PATPOST PROFIT | 307 |
| NCI SHARE 25% | 77 |
| JESSICA SHARE 75% | 230 |
| JESSICA's Own profit | 1,008 |
| JESSICA's unrealized profit | (800) |
| PROFIT ATTRIBUTABLE TO JESSICA | 438 |
To do the same topic again in ACCA F3 New Consolidated Account 2