STATEMENT OF Profit or Loss AND OTHER COMPREHENSIVE INCOME for the Year Ended 31 December 2017

P Limited acquired 80% of S Limited on 30 April 2017.

Additional information on specific items in the newly acquired subsidiary’ statement of profit or loss and other comprehensive income is as follows:
1. Revenue and expenses The amount will include only the subsidiary’s post-acquisition revenue and expenses (generally time-apportioned).
2. Profit before taxation This will include only the post-acquisition results of the subsidiary (generally timeapportioned):

3. Disclosure items relating to profit before taxation In relation to depreciation, auditors’ remuneration and interest payable, they should be apportioned on a time basis and only the post-acquisition element should be included in the consolidated statement of profit or loss and other comprehensive income.
4. Income tax expense The taxation charge will include only the subsidiary’s post-acquisition taxation charge (generally time-apportioned):

Requirement Prepare the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2017.

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Profit before taxation Income tax expense Profit after taxation P Limited 100,000 45,000 55,000 S Limited 60,000 27,000 33,000