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 2017, 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 profit or loss and other comprehensive income of Opus, Sonata and Prelude for the year ended 31 December 2017 are as follows:

Additional Information:
1. The net assets of Sonata on 1 January 2017 were as follows:

The difference between the carrying value and the fair value of property, plant and equipment is due to a revaluation of property, while the reduction in inventory relates to a change in the accounting policy for inventory in order to bring Sonata’s inventory into line with those of Opus. Otherwise the accounting policies adopted by Sonata are similar to those of Opus. The required change in the closing inventory of Sonata to ensure uniform accounting policies is a decrease of €30,000. The fair values shown above have not yet been incorporated into Sonata’s financial statements. With respect to the measurement of non-controlling interests at the date of acquisition, the proportionate share method equates to the-fair value method. The directors of Opus believe that the goodwill arising on the acquisition of Sonata was impaired by €12,000 at 31 December 2017.
2. The fair value of the net assets of Prelude was the same as their book value on 1 January 2017. The statement of financial position of Prelude showed the following on this date:

The directors of Opus estimate that the goodwill arising on the acquisition of Prelude has not been impaired at 31 December 2017.
3. Following the acquisition of shares in Sonata and Prelude, the directors of Opus decided to run down certain parts of Opus’s business activities. These were finally discontinued in December 2017. The contribution to the business of these activities in 2017 was:

4. It is Group policy to charge any impairment of goodwill to cost of sales.

5. Opus, Sonata and Prelude each follow a policy of depreciating all fixed assets at 10% per annum on their carrying value. Depreciation is charged to cost of sales in the statement of profit or loss and other comprehensive income.
6. There were no inter-company sales between Opus, Sonata and Prelude, and the directors of Opus are not directors of Sonata or Prelude.
Requirement Assuming that Sonata is to be accounted for as a subsidiary and Prelude as an associate, prepare the consolidated statement of profit or loss and other comprehensive income of Opus Group for the year ended 31 December 2017 in a form suitable for publication.
Note:
1. A statement detailing the amount of the consolidated profit dealt with in Opus’s financial statements is not required.
2. Notes to the consolidated statement of profit or loss and other comprehensive income are not required.

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Revenue Cost of sales Gross profit Distribution costs Administrative expenses Operating profit Interest payable and similar charges Interest receivable Profit on ordinary activities before tax Tax on profit on ordinary activities Opus Sonata Prelude 000 000 000 22,500 1,950 1,500 (15,000) (1,225) (1,000) 7,500 725 500 (2,200) (175) (90) (275) (15) (10) 5,025 535 400 (40) (10) (20) 20 5 10 5,005 530 390 (1,605) (100) (80)