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 | 29,400 | 21,600 |
| COST OF SALES | 14,700 | 12,960 |
| GROSS PROFIT | 14,700 | 8,640 |
| OPERATING EXPENSES | 10,290 | 5,184 |
| PROFIT BEFORE TAX | 4,410 | 3,456 |
| TAX | 882 | 691 |
| PROFIT | 3,528 | 2,765 |
During the year Jessica Co sold goods costing $1,600 to Patpost Co for $2,400. 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 | 29,400 | 21,600 | (2,400) | 48,600 |
| COST OF SALES | 14,700 | 12,960 | Derived | 25,660 |
| GROSS PROFIT | 14,700 | 8,640 | (400) | 22,940 |
| OPERATING EXPENSES | 10,290 | 5,184 | 15,474 | |
| PROFIT BEFORE TAX | 4,410 | 3,456 | 7,466 | |
| TAX | 882 | 691 | 1,573 | |
| PROFIT | 3,528 | 2,765 | 5,893 |
| PATPOST PROFIT | 2,765 |
| NCI SHARE 25% | 691 |
| JESSICA SHARE 75% | 2,074 |
| JESSICA's Own profit | 3,528 |
| JESSICA's unrealized profit | (400) |
| PROFIT ATTRIBUTABLE TO JESSICA | 5,202 |
To do the same topic again in ACCA F3 New Consolidated Account 2