ABC Ltd acquired 70% of the shares in XYZ Ltd on 31st December 2015 for a cost of 4,000,000. The balance sheets of the two companies at 31 December 2016, and the profit and loss accounts for the year ended 31 December 2016 are as follows:

Additional information:

A goodwill impairment review has been carried out and it has been determined that goodwill has been impaired by 300,000 as at 31^st December 2016

On 31^st December 2016, ABC Ltd paid XYZ Ltd 200,000 in respect of intercompany liabilities, but XYZ has not yet recognised this in its accounts.

Prepare the consolidated profit and loss account for the Group for the year ended 31st December

ABC Ltd XYZ Ltd

Balance Sheet at 31 December

2016 '000 '000

Fixed Assets 1,500 2,000

Investment in XYZ Ltd 4,000 Current Assets

Due from group company	1,100	450
Other current assets	300	1,350
Current liabilities
Due to Group Company	-250	-1,100
Other current liabilities	-400	-150
	6,250	2,550
Ordinary shares	2,000	1,275
P&L account pre 31.12.15	3,650	725
y/e 31.12.16	600	550
	6,250	2,550
Profit & Loss account
Year ended 31 December 2016
Sales external	6600	2700
intergroup	1700	1950
Cost of sales external	-5100	-2000
intergroup	-1950	-1700
Gross Profit	1250	950
Admin Expenses	-450	-275
Net profit before tax	800	675
Taxation	-200	-125
Net profit after tax	600	550