=+OPUS Limited (OPUS), a company which prepares its financial statements to 31 December each year, carries on business as a distributor of musical instruments. On 1 January 2003, OPUS acquired 90% of the ordinary share capital of SONATA Limited (SONATA) at a cost of €942,000. On the same day, OPUS also acquired 30% of the ordinary share capital of PRELUDE Limited (PRELUDE) at a cost of €220,000.

The draft statements of comprehensive income of OPUS, SONATA and PRELUDE for the year ended 31 December 2003 are as follows:

OPUS

€ 000 Revenue 22,500 Cost of sales (15,000)

Gross profit 7,500 Distribution costs (2,200)

Administrative expenses (275)

Operating profit 2.02)

Interest payable and similar charges (40)

Interest receivable ne26 Profit on ordinary activities before tax 5,005 Tax on profit on ordinary activities (1,605)

Profit on ordinary activities after tax 3,400 Dividends paid (250)

Retained profit for the year 3,150 Additional Information SONATA

€000 1,950

(1,225)

725

(175)

(15)

535

(10)

DW 530 (100)

430 430