Aroma plc (Aroma) purchased 30% of Therapy Limited (Therapy) on 1 July 2014. At all times, Aroma
Question:
Aroma plc (“Aroma”) purchased 30% of Therapy Limited (“Therapy”) on 1 July 2014. At all times, Aroma participates fully in Therapy’s financial and operating policy decisions. At the date of acquisition, Therapy’s statement of financial position was as follows:
The statements of financial position of Aroma and Therapy as at 30 June 2018 are as follows:
In addition, the draft statements of profit or loss and other comprehensive income of the two companies for the year ended 30 June 2018 are as follows:
Requirement Prepare the consolidated statement of profit or loss and other comprehensive income of Aroma Group for the year ended 30 June 2018, and statement of financial position as at that date.
Step by Step Answer:
International Financial Accounting And Reporting
ISBN: 9781912350025
6th Edition
Authors: Ciaran Connolly