2. P Ltd Given below are the statements of profit or loss for P Ltd and its S Ltd for the year ended 31 December 20X2. P S $000 $000 8,500 4,200 Revenue Cost of sales (4,300) (1,700) Gross profit 4,200 2,500 Distribution costs (1,300) (360) Administrative expenses (1,900) (1,240) Profit from operations 1,000 900 Investment income 2,200 1,220 Finance cost Profit before tax (180) (40) 3,020 2,080 Taxation Profit for the year (500) (300) 2,520 1,780 Additional information: a) P Ltd paid $4m on 1 September 20X2 for 80% of S's ordinary shares. The fair value of S's Ltd net assets were $3.2m at acquisition. b) S Ltd paid an interim dividend during the year of $300,000. c) S Ltd made sales to P Ltd on 30 November 20X2, at a selling price of $150,000 making a mark-up of 50%. 20% of these goods were sold before the end of the year, the rest were still in inventory. d) An impairment of 10% on goodwill was found to be necessary at the year-end. Impairments are included within administrative expenses. e) P Ltd gave a 4% loan to S Ltd of $500,000 on 1 November 20X2. The interest payable and interest receivable was included within finance cost of S Ltd and investment income of P Ltd, respectively. f) P Ltd value the non-controlling interests using the share of net assets method. Required: Prepare the consolidated statement of profit or loss for the year ended 31 December 20X2 for the P Ltd group. All numbers shall be rounded up. 3 (20 marks) Question 3 On 1 January 20X3, XYZ bought in am Decem. The bond will bought be redeer ffective rate C The fair value of the bond was as follow December 20X5. The effective 31 Dec 20x3: $212,000 31 Dec 20X4