CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME EXAMPLE

The following are the statements of profit or loss and other comprehensive income of Pear PLC, Sloe Ltd and Apple Ltd for the year ended 30 June 2013:

Pear PLC Sloe Ltd Apple Ltd

$000 $000 $000

Revenue 14,000 9,750 6,870

Cost of sales (8,400) (5,850) (2,620)

Gross Profit 5,600 3,900 4,250

Dividends receivable Sloe Ltd 20

-Red Ltd 10

Distribution costs (480) (450) (160)

Administrative expenses (1,490) (650) (460)

Finance costs (350) (180) (70)

Profit before tax 3,310 2,620 3,560

Income tax expense (1,350) (1,050) (420)

Profit for the year 1,960 1,570 3,140

Other comprehensive income 500 Nil Nil

Total comprehensive income for the year 2,460 1,570 3,140

The following additional information is available:

1. Pear PLC acquired 70% of the ordinary shares of Sloe Ltd on 1 July 2010 when its reserves were as follows: Share premium account $800,000; Retained earnings $2,500,000

2. At 1 July 2010, the fair value of the property, plant and equipment of Sloe Ltd exceeded the carrying value by $160,000. The surplus has not been reflected in the financial statements of Sloe Ltd. At that date the average remaining useful life of the non-current assets was four years.

3. Pear PLC acquired 30% of the ordinary shares of Apple Ltd on 1 July 2011 when the reserves of Apple Ltd were: Share premium $1,500,000; Retained earnings $2,600,000

4. During March 2013 Sloe Ltd sold goods to Pear PLC at invoice value $200,000 on which Sloe Ltd made a gross profit of 20%. One half of the goods remained in the inventory of Pear PLC at 30 June 2013.

5. Impairment of goodwill on acquisition of Sole Ltd and the carrying value of the investment in Apple Ltd occurred as follows:

Year ended 30 June 2012 Sloe Ltd $30,000

Apple Ltd $20,000

Year ended 30 June 2013 Sloe Ltd $50,000

Apple Ltd $40,000

There was goodwill on acquisition of Sloe Ltd of $60,000 attributable to the non-controlling interests (NCI).

6. Pear PLC had 10 million ordinary shares of $1 each in issue on 1 July 2012. On the 31 March 2013, the company made a bonus issue of one for four out of share premium which stood at $4,000,000 on the 1 July 2012.

7. Pear PLC revalued its property during the reporting period under review giving rise to a revaluation surplus of $500,000.

8. Retained earnings at 1 July 2012:

Pear PLC $6,750,000

Sloe Ltd $3,690,000

Apple Ltd $3,300,000

9. Pear PLC owns 10% of the ordinary shares of Red Ltd. The fair value of the investment did not change during the year.

Required:

Prepare the consolidated statement of profit and loss and other comprehensive income for the Pear PLC group for the year ended 30 June 2013.