=+Question 6 Based on ICAI, P3 Summer 2005, Questions 1 & 2)

You are an accountant with GOLD Group ple (GOLD), an Irish company involved in mining precious metals. You have responsibility for the consolidation of GOLD’s financial statements, and you have just received draft financial statements for the year ended 31 December 2005 in respect of GOLD, SILVER Limited (SILVER) and COPPER Incorporated (COPPER).

Draft Statement of Comprehensive Income for the Year Ended 31 December 2005 Revenue Cost of sales Gross profit Net operating expenses Operating profit Income tax expense Profit on ordinary activities after tax Dividends proposed Retained profits for the year Retained profits at start of year Retained profits at end of year GOLD

€’000 600,000

(360,000)

240,000

(120,000)

120,000

(54,000)

66,000 SILVER

€’000 105,000

(63,000)

42,000

(21,000)

COPPER

$000 33,000

(20,000)

13,000

(6,000)