Create the consolidated statement of comprehensive income, Cost Accounting

Assignment Help:

Question

The statements of comprehensive income for three entities for the year ended 30 September 2009 are presented below: SOT

PB

UV

$000

$000

$000

Revenue

6,720

6,240

5,280

Cost of sales

(3,600)

(3,360)

(2,880)

Gross profit

3,120

2,880

2,400

Administrative expenses

(760)

(740)

(650)

Distribution costs

(800)

(700)

(550)

Investment income

80

-

-

Finance costs

(360)

(240)

(216)

Profit before tax

1,280

1,200

984

Income tax expense

(400)

(360)

(300)

Profit for the year

880

840

684

Other comprehensive income

Actuarial gains on defined benefit pension plan

110

-

40

Tax effect of other comprehensive income

(30)

-

(15)

Other comprehensive income for the year, net of tax

80

-

25

Total comprehensive income for the year

960

840

709







1.  On 1 September 2009 PB paid a dividend of $100,000 and SOT has recorded its share in investment income.

2. SOT holds numerous available for sale investments, and accounts for these in accordance with IAS 39 Financial Instruments: recognition and measurement. Gains on succeeding measurement of $46,000 occurred in the year. The financial controller however is unsure how this should be obtainable within the statement of comprehensive income and so has yet to include it.

3. SOT also liable to an available for sale investment during the year to 30 September 2009 for $630,000, when the carrying value of the investment was $580,000. The gain on disposal of $50,000 is included in administrative payment. Formerly recognised gains associated with this investment of $40,000 still remain in other reserves.

Suppose that all income and gains for the three entities accumulate evenly throughout the year.

Ignore any further tax impact of accessible for sale investments.

Round all figures to the nearest $000.

Required:

Create the consolidated statement of comprehensive income for the SOT group for the year ended 30 September 2009.


Related Discussions:- Create the consolidated statement of comprehensive income

Specific oder costing, in what ways does specific order costing differ from...

in what ways does specific order costing differ from process costing

Determine internal rate of return and cash flow statement , A local deliver...

A local delivery company has purchased a delivery truck for $15,000.  The truck will be depreciated under MACRS as a five year property.  The trucks market value (salvage value)

introduction of internal rate of return , Introduction of Internal Rate of...

Introduction of Internal Rate of Return The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to vario

Outstanding expenses, Expenses are usually recorded only while they are pai...

Expenses are usually recorded only while they are paid. The failure to record unpaid expenses in the accounts outcomes in an understatement of which expense and also an understatem

Calculate the discounted cash flow and net present value, King Airlines ...

King Airlines King Airlines is one of many low-cost airlines in Europe. The managers want to expand the business and have an opportunity to purchase a second-hand plane to op

What is the optimal price without price discrimination, We consider two reg...

We consider two regions A and B. Each market has the same size (i.e. number of consumers) but differs in the willingness to pay for one unit of the good proposed by the firm. On ma

Determine the cost of the finished goods inventory, Manufacturing statemen...

Manufacturing statements and cost behavior  Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-g

Describe time sheets and job cards, (a) Describe briefly how the following ...

(a) Describe briefly how the following are used in the accounting for labour: (i)   time sheets (ii)   job cards. (b) The following details relate to the labour in a produ

Importance of cost classification, Importance of Cost Classification A...

Importance of Cost Classification Analysis of cost behaviour is significant to all organizations for effective management. It is since many organizations have a unique cost st

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd