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 | 4,200 | 19,200 |
| COST OF SALES | 2,100 | 11,520 |
| GROSS PROFIT | 2,100 | 7,680 |
| OPERATING EXPENSES | 1,470 | 4,608 |
| PROFIT BEFORE TAX | 630 | 3,072 |
| TAX | 126 | 614 |
| PROFIT | 504 | 2,458 |
During the year Jessica Co sold goods costing $400 to Patpost Co for $600. 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 | 4,200 | 19,200 | (600) | 22,800 |
| COST OF SALES | 2,100 | 11,520 | Derived | 13,120 |
| GROSS PROFIT | 2,100 | 7,680 | (100) | 9,680 |
| OPERATING EXPENSES | 1,470 | 4,608 | 6,078 | |
| PROFIT BEFORE TAX | 630 | 3,072 | 3,602 | |
| TAX | 126 | 614 | 740 | |
| PROFIT | 504 | 2,458 | 2,862 |
| PATPOST PROFIT | 2,458 |
| NCI SHARE 25% | 615 |
| JESSICA SHARE 75% | 1,844 |
| JESSICA's Own profit | 504 |
| JESSICA's unrealized profit | (100) |
| PROFIT ATTRIBUTABLE TO JESSICA | 2,248 |
To do the same topic again in ACCA F3 New Consolidated Account 2