Example 1 P Co acquired 75% of the ordinary shares of S Co on that company's incorporation in 20X3. The summarised statements of profit or loss and movement on retained earnings of the two companies for the year ending 31 December 20X6 are set out below. P Co S Co $ $ Sales revenue Cost of sales Gross profit Administrative expenses 75,000 38,000 (30,000) (20,000) 45,000 18,000 (14,000) (8,000) Profit before tax 31,000 10,000 Income tax expense (10,000) (2,000) profit for the year 21,000 8,000 Note: Movement on retained earnings Retained earnings brought forward 87,000 17,000 Profit for the year 21,000 8,000 Retained earnings carried forward 108,000 25,000 Required Prepare the consolidated statement of profit or loss and extract from the statement of changes in equity showing retained earnings and non-controlling interest.