the following are the financial statements of the parent company swish plc a subsidi 535065
The following are the financial statements of the parent company Swish plc, a subsidiary company Broom and an associate company Handle.
Statements of financial position as at 31 December 20X3
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the following are the financial statements of the parent company swish plc a subsidi 535065
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|
Swish |
Broom |
Handle |
|
|
ASSETS |
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|
Non-current assets |
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|
Property, plant and equipment at cost |
320,000 |
180,000 |
100,000 |
|
Depreciation |
200,000 |
70,000 |
21,000 |
|
120,000 |
110,000 |
79,000 |
|
|
Investment in Broom |
140,000 |
||
|
Investment in Handle |
40,000 |
||
|
Current assets |
|||
|
Inventories |
120,000 |
60,000 |
36,000 |
|
Trade receivables |
130,000 |
70,000 |
36,000 |
|
Current account – Broom |
15,000 |
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|
Current account – Handle |
3,000 |
||
|
Bank |
24,000 |
7,000 |
6,000 |
|
Total current assets |
292,000 |
137,000 |
78,000 |
|
Total assets |
592,000 |
247,000 |
157,000 |
|
EQUITY AND LIABILITIES |
|||
|
£1 ordinary shares |
250,000 |
60,000 |
50,000 |
|
General reserve |
30,000 |
20,000 |
12,000 |
|
Retained earnings |
150,000 |
120,000 |
50,000 |
|
430,000 |
200,000 |
112,000 |
|
Current liabilities |
|||
|
Trade payables |
132,000 |
25,000 |
34,000 |
|
Taxation payable |
30,000 |
7,000 |
8,000 |
|
Current account – Swish |
15,000 |
3,000 |
|
|
Total equity and liabilities |
592,000 |
247,000 |
157,000 |
Statement of comprehensive income for the year ended 31 December 20X3
|
£ |
£ |
£ |
|
|
Sales |
300,000 |
160,000 |
100,000 |
|
Cost of sales |
90,000 |
80,000 |
40,000 |
|
Gross profit |
210,000 |
80,000 |
60,000 |
|
Expenses |
95,000 |
50,000 |
40,000 |
|
Dividends paid (shown in equity) |
40,000 |
10,000 |
8,000 |
|
Dividends received from Broom and Handle |
11,000 |
NIL |
10,000 |
|
Profit before tax |
126,000 |
30,000 |
30,000 |
|
Income tax expense |
30,000 |
7,000 |
8,000 |
|
Profit for the period |
96,000 |
23,000 |
22,000 |
|
Dividend paid (shown in equity) |
40,000 |
10,000 |
8,000 |
Swish acquired 90% of the shares in Broom on 1 January 20X1 when the balance on the retained earnings of Broom was £60,000 and the balance on the general reserve of Broom was £16,000. Swish also acquired 25% of the shares in Handle on 1 January 20X2 when the balance on Handle’s accumulated retained profits was £30,000 and the general reserve £8,000.
During the year Swish sold Broom goods for £16,000, which included a mark-up of one-third. 80% of these goods were still in inventor y at the end of the year. Non-controlling interests are measured using method 1.
Required:
(a) Prepare a consolidated statement of comprehensive income, including the associated company Handle’s results, for the year ended 31 December 20X3.
(b) Prepare a consolidated statement of financial position as at 31 December 20X3. The group policy is to measure non-controlling interests using method 1.
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