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 | 4,800 |
| COST OF SALES | 4,200 | 2,880 |
| GROSS PROFIT | 4,200 | 1,920 |
| OPERATING EXPENSES | 2,940 | 1,152 |
| PROFIT BEFORE TAX | 1,260 | 768 |
| TAX | 252 | 154 |
| PROFIT | 1,008 | 614 |
During the year Jessica Co sold goods costing $2,000 to Patpost Co for $3,000. 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 | 4,800 | (3,000) | 10,200 |
| COST OF SALES | 4,200 | 2,880 | Derived | 4,580 |
| GROSS PROFIT | 4,200 | 1,920 | (500) | 5,620 |
| OPERATING EXPENSES | 2,940 | 1,152 | 4,092 | |
| PROFIT BEFORE TAX | 1,260 | 768 | 1,528 | |
| TAX | 252 | 154 | 406 | |
| PROFIT | 1,008 | 614 | 1,122 |
| PATPOST PROFIT | 614 |
| NCI SHARE 25% | 154 |
| JESSICA SHARE 75% | 461 |
| JESSICA's Own profit | 1,008 |
| JESSICA's unrealized profit | (500) |
| PROFIT ATTRIBUTABLE TO JESSICA | 969 |
To do the same topic again in ACCA F3 New Consolidated Account 2