Smith Limited bought 80% of the share capital of Jones Limited for €324,000 on 1 October 2015. At that date Jones Limited’s retained earnings stood at €180,000. The statements of financial position at 30 September 2018 and the summarised statements of profit or loss and other comprehensive income to that date are given below.

No entries have been made in the accounts for any of the transactions below. Assume that profits accrue evenly throughout the year and that any goodwill is accounted for in accordance with IFRS 3.
(Ignore taxation.)
Requirement Prepare the consolidated statement of profit or loss and other comprehensive income for the year ended 30 September 2018, and the statement of financial position as at that date, under each of the following circumstances:

(a) Smith Limited sells its entire holding in Jones Limited for €650,000 on 30 September 2018.

(b) Smith Limited sells its entire holding in Jones Limited for €650,000 on 30 June 2018.
(Assume that no goodwill is written off due to impairment.)

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Smith Limited Jones Limited 000 000 Assets Tangible non-current assets Investment in Jones Limited Net current assets Equity 1 ordinary shares Retained earnings 360 270 324 270 270 954 540 540 180 414 360 954 540 Profit before tax 153 126 Income tax expense (45) (36) Retained earnings 108 90 Retained earnings b/f 306 270 Retained earnings c/f 414 360