Solution-Prepare the consolidated statement of profit

Prepare the consolidated statement of profit

Assignment Help Cost Accounting

Reference no: EM13558026

At 1 January 20X9 Penguin plc paid $1.2m for an 80% share in Platypus Ltd. Platypus Ltd's net assets at the date of acquisition were:

	$'000
Share capital	500
Retained earnings	850
Revaluation surplus	450

It is group policy is to measure non-controlling interests at acquisition at fair value. The fair value of the non-controlling interest at the date of acquisition was $400,000.

Statements of profit or loss for both companies for the year ended 31 December 20X9 were:

	Penguin	Platypus
	$'000	$'000
Revenue	12500	2,600
Cost of sales	(7400)	(1,090)
Gross profit	5100	1,510
Distribution costs	(700)	(220)
Administrative expenses	(1300)	(550)
Finance costs	(40)	-
Profit before tax	3060	740
Income tax expense	(900)	(230)
Profit for the year	2160	510

Required

Calculate the goodwill on acquisition and prepare the consolidated statement of profit or loss of the Penguin Group for the year ended 31 December 20X9.

Reference no: EM13558026

Questions Cloud

Piece of sandston with a bulk volume : A piece of sandston with a bulk volume of 1.3 cc is contained ina 5-cc cell filled with helium at 760 mm Hg. Temperature ismaintained constant and the cell is opened to another evacuatedcell the same volume.

What is the total force on the roof atcollapse : A storage tank has a diameter of 80 ft, a height of 25 feet, andcontains oil to a height of 15 ft. The suction pumps, whichcan handle 15, 000 bbl/d are started, but the safety valves areclogged and a vacuum is drawn in the tank.

What is the speed of the waves in the coffee : When you walk with a cup of coffee (diameter5 cm) at just the right pace of about1 step per second,What is the speed of the waves in the coffee

What is the frequency as heard by the passengers in the van : A fire engine moving to the right at 40 m/s sound its horn (frequency = 500 Hz) at the two vehicles shown in the figure. The car is moving to the right at 30 m/s, while the van is at rest. (a) What frequency is heard by the passenger in the car?

Prepare the consolidated statement of profit : Calculate the goodwill on acquisition and prepare the consolidated statement of profit or loss of the Penguin Group for the year ended 31 December 20X9.

What is the larger radial position : A source emits sound uniformly in all directions. A radial line isdrawn from this source. On this line, determine the radialpositions of two points, 1.28 m apart, such that the intensitylevel at one point is 2.46 dB greater than that at the other.

A water bed has dimensions : A water bed has dimensions of 1.83 m x 2.13 m x 0.229 m. The floorof the bedroom will tolerate an additional weight of no more than6660 N. Find the weight of the water in the bed to determinewhether it should be purchased.

Explain what is the ph of a queous solution of nh4cl : Kb for NH3 is 1.8 x 10^-5. What is the pH of a 0.35 M aqueous solution of NH4Cl at 25.0 degrees C? NH4 (aq) NH3(aq) + H+ +Cl-(aq)

What frequency does the girl now hear : A girl is sitting nearthe open window of a train that is moving at a velocity of17.00 m/s to the east. What frequency does the girl now hear

User Account

All Pages

Prepare the consolidated statement of profit

Reference no: EM13558026

Reference no: EM13558026

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT