Prepare a consolidated statement of comprehensive income

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Reference no: EM131195048

The statements of financial position of Red Ltd and Pink Ltd at 31 December 20X2 are as follows: Red Pink

	Red $	Pink $
ASSETS
Non-current assets	200,000	100000
Depreciation	80,000	30,000
	120000	70,000
Investment in Fink Ltd	110,000
Current assets
1nventones	100000	30,000
Trade receivables,	80,000	40,000
Current account - Rink Ltd	10000
Bank	16,000	8,000
	206,000	78,000
Total assets	436,000	148,000
EQUITY AND LIABILITIES
Capitol and resents
$1 cocrrnon shares	176,000	40,000
Genera/ reserve	20,000	14,000
Retained earnings	100,000	60,000
	296,000	114,000
Current liabilities
Trade payables	125,996	18,000
Taxation payable	14,004	6,000
Current account - Red Ltd		10,000
	140,000	34,000
Total equity and liabilities	436,000	148,000

Statements of comprehensive Income for the year ended 31 December 20X2

	S	S
Sales	200,000	120,000
Cost of sales	60,080	60,000
Gross profit	140,000	60,000
Expenses	59,082	40,000
Dividends received	3,750	NL
Profit before tax	84,668	20,000
Income tax expense	14,004	6,000
	70,664	14,000

Red Ltd acquired 75% of the shares in Pink Ltd on 1 January 20X0 when Pink Ltd's retained earnings were $30,000 and the balance on Pink's general reserve was $8,000. The fair value of the non-controlling interest at the date was £32,000. Non-controlling interests are to be measured using method 2. During the year Pink sold Red goods for $9,000 plus a mark-up of one-third. Half of these goods were still in inventory at the end of the year. Goodwill suffered an impairment loss of 20%.

Required:
Prepare a consolidated statement of comprehensive income for the year ended 31/12/20X2 and a statement of financial position as at that date.

Reference no: EM131195048

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