The following are the draft financial statements of P Limited and S Limited for the year ended 31 December 2017.

P Limited acquired 75% of the ordinary shares of S Limited on 1 January 2016 when the reserves of S Limited were €10,000. The investment is sold for €115,000 on 31 December 2017. Goodwill, which is accounted for in accordance with IFRS 3, suffered impairment of €4,500 during the year ended 31 December 2016.
Requirement Calculate the profit on disposal of the shares to be included in P Limited’s own and consolidated financial statements.

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME P Limited S Limited Profit before tax 60,000 40,000 Income tax expense (24,000) (16,000) Profit after tax 36,000 24,000 Retained earnings b/f 104,000 16,000 140,000 40,000 STATEMENT OF FINANCIAL POSITION P Limited S Limited Assets Investment in S Sundry net assets 75,000 265,000 100,000 340,000 100,000 Equity Ordinary 1 shares Reserves 200,000 60,000 140,000 40,000 340,000 100,000