7912 P Find the power and preparecord in F fequencanding and the proveo ured was whether the poor Statement of Profit or Loss For The Year Ended 31 December 2019 Fred Ltd. Victor Ltd 87,500 (42,300) 45,200 Patime Ltd E 43,500 (23,220) 20,280 Revenue Cost of Sales Gross Profit Other income Operating Expenses Profit before tax Tax Profit for the year 110,000 (55,000) 55,000 7,900 (25,500) 37,400 (10,210) 27,190 (21,100) 24,100 (4,820) 19,280 (5,500) 14,780 (2,956) 11,824 Additional information: a) Fred Lid purchased 70% of Victor Ltd and 40% of Patime Ltd on 1 April 2019. i 2 3 P Additional information a) Fred Lid purchased 70% of Victorld and 40% of Palme Lid on 1 April 2019 b) In December 2019, Victor Lid sold some goods to Fred Lid for 7,000 at a margin of 20% One quarter of these goods had been sold by Fred Lld at the year end c) Included within other income is a 2,900 dividend received from Victor Lld REQUIREMENT a) Prepare the consolidated statement of profit or loss for the Fred group for the year ended 31 December 2010 (17 marks) b) Explain the reason why a Provision for Unrealised Profit (PUP) calculation has to be performed on intra company sales and deducted from inventory (4 marks) c) The board of Fred Lid are considering acquiring another subsidiary. There are three potential subsidiaries they could acquire, and they are interested to know whether or not they would need to be consolidated given the details below (9 marks) i 1 2 3 details below (9 marks) My would not to be consolidated given the - Mirth Lid-a company which has a year end of 30 November 2019. There was a major flood on 3rd December 2019 which destroyed some of the inventory held by Mirth Washer Ltd - a company which produces kitchen appliances whereas Fred sells car parts Jostle Ltd - a company which uses the AVCO method to value its stock whereas Fred Lid uses the FIFO method Explain whether each of the companies above would need to be consolidated and if so, explain how the issue described would be treated in the consolidated financial statements. (Total Question 2: 30 marks) Fill in your answer here Help -- 7912 P Find the power and preparecord in F fequencanding and the proveo ured was whether the poor Statement of Profit or Loss For The Year Ended 31 December 2019 Fred Ltd. Victor Ltd 87,500 (42,300) 45,200 Patime Ltd E 43,500 (23,220) 20,280 Revenue Cost of Sales Gross Profit Other income Operating Expenses Profit before tax Tax Profit for the year 110,000 (55,000) 55,000 7,900 (25,500) 37,400 (10,210) 27,190 (21,100) 24,100 (4,820) 19,280 (5,500) 14,780 (2,956) 11,824 Additional information: a) Fred Lid purchased 70% of Victor Ltd and 40% of Patime Ltd on 1 April 2019. i 2 3 P Additional information a) Fred Lid purchased 70% of Victorld and 40% of Palme Lid on 1 April 2019 b) In December 2019, Victor Lid sold some goods to Fred Lid for 7,000 at a margin of 20% One quarter of these goods had been sold by Fred Lld at the year end c) Included within other income is a 2,900 dividend received from Victor Lld REQUIREMENT a) Prepare the consolidated statement of profit or loss for the Fred group for the year ended 31 December 2010 (17 marks) b) Explain the reason why a Provision for Unrealised Profit (PUP) calculation has to be performed on intra company sales and deducted from inventory (4 marks) c) The board of Fred Lid are considering acquiring another subsidiary. There are three potential subsidiaries they could acquire, and they are interested to know whether or not they would need to be consolidated given the details below (9 marks) i 1 2 3 details below (9 marks) My would not to be consolidated given the - Mirth Lid-a company which has a year end of 30 November 2019. There was a major flood on 3rd December 2019 which destroyed some of the inventory held by Mirth Washer Ltd - a company which produces kitchen appliances whereas Fred sells car parts Jostle Ltd - a company which uses the AVCO method to value its stock whereas Fred Lid uses the FIFO method Explain whether each of the companies above would need to be consolidated and if so, explain how the issue described would be treated in the consolidated financial statements. (Total Question 2: 30 marks) Fill in your answer here Help