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 | 33,600 | 9,600 |
| COST OF SALES | 16,800 | 5,760 |
| GROSS PROFIT | 16,800 | 3,840 |
| OPERATING EXPENSES | 11,760 | 2,304 |
| PROFIT BEFORE TAX | 5,040 | 1,536 |
| TAX | 1,008 | 307 |
| PROFIT | 4,032 | 1,229 |
During the year Jessica Co sold goods costing $2,800 to Patpost Co for $4,200. 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 | 33,600 | 9,600 | (4,200) | 39,000 |
| COST OF SALES | 16,800 | 5,760 | Derived | 19,060 |
| GROSS PROFIT | 16,800 | 3,840 | (700) | 19,940 |
| OPERATING EXPENSES | 11,760 | 2,304 | 14,064 | |
| PROFIT BEFORE TAX | 5,040 | 1,536 | 5,876 | |
| TAX | 1,008 | 307 | 1,315 | |
| PROFIT | 4,032 | 1,229 | 4,561 |
| PATPOST PROFIT | 1,229 |
| NCI SHARE 25% | 307 |
| JESSICA SHARE 75% | 922 |
| JESSICA's Own profit | 4,032 |
| JESSICA's unrealized profit | (700) |
| PROFIT ATTRIBUTABLE TO JESSICA | 4,254 |
To do the same topic again in ACCA F3 New Consolidated Account 2