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 | 4,800 |
| COST OF SALES | 16,800 | 2,880 |
| GROSS PROFIT | 16,800 | 1,920 |
| OPERATING EXPENSES | 11,760 | 1,152 |
| PROFIT BEFORE TAX | 5,040 | 768 |
| TAX | 1,008 | 154 |
| PROFIT | 4,032 | 614 |
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 | 33,600 | 4,800 | (2,400) | 36,000 |
| COST OF SALES | 16,800 | 2,880 | Derived | 17,680 |
| GROSS PROFIT | 16,800 | 1,920 | (400) | 18,320 |
| OPERATING EXPENSES | 11,760 | 1,152 | 12,912 | |
| PROFIT BEFORE TAX | 5,040 | 768 | 5,408 | |
| TAX | 1,008 | 154 | 1,162 | |
| PROFIT | 4,032 | 614 | 4,246 |
| PATPOST PROFIT | 614 |
| NCI SHARE 25% | 154 |
| JESSICA SHARE 75% | 461 |
| JESSICA's Own profit | 4,032 |
| JESSICA's unrealized profit | (400) |
| PROFIT ATTRIBUTABLE TO JESSICA | 4,093 |
To do the same topic again in ACCA F3 New Consolidated Account 2