Extracts from the statements of profit or loss and other comprehensive income for the year ended 31 December 2017 of P Limited and S Limited show the following:

Additional Information:
1. P Limited owns 75% of the equity share capital of S Limited.
2. The profit on sale of tangible non-current assets in P Limited arose as a result of a transfer of a part of its plant and machinery to S Limited on 30 June 2017.

S Limited had no non-current assets prior to 30 June 2017 and has not acquired/disposed of any since. The group’s policy is to depreciate plant at 10% on cost on a month-by-month basis. S Limited has, however, been calculating depreciation on the transferred asset at 10%
of the transfer value on a month-by-month basis.
Requirement Draft the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2017.

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Gross profit Administration expenses P Limited 10,000 (1,000) S Limited 6,000 (2,000)