river plc acquired 90 of the common shares and 10 of the 5 bonds in pool ltd on 31 m 535053
River plc acquired 90% of the common shares and 10% of the 5% bonds in Pool Ltd on 31 March 20X1. All income and expenses are deemed to accrue evenly through the year. On 31 January 20X1 River sold Pool goods for £6,000 plus a markup of one-third. 75% of these goods were still in stock at the end of the year. There was a goodwill impairment loss of £4,000. On 31/12/20X1 River increased its non-current assets by £15,000 on revaluation. Non-controlling interests are measured using method 1. Set out below are the individual statements of comprehensive income of River and Pool:
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river plc acquired 90 of the common shares and 10 of the 5 bonds in pool ltd on 31 m 535053
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Statements of comprehensive income for the year ended 31 December 20X1 |
||
|
River |
Pool |
|
|
£ |
£ |
|
|
Net turnover |
100,000 |
60,000 |
|
Cost of sales |
30,000 |
30,000 |
|
Gross profit |
70,000 |
30,000 |
|
Expenses |
20,541 |
15,000 |
|
Interest payable on 5% bonds |
5,000 |
|
|
Interest receivable on Pool Ltd bonds |
500 |
|
|
49,959 |
10,000 |
|
|
Dividends received |
2,160 |
NIL |
|
Profit before tax |
52,119 |
10,000 |
|
Income tax expense |
7,002 |
3,000 |
|
Profit for the period |
45,117 |
7,000 |
Required:
Prepare a consolidated statement of comprehensive income for the year ended 31 December 20X1.
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