Hi,

I just wanted to know how we get the consolidated group figure in the attachment. I know how the adjustments are made but I don't understand whether the adjustments for each particular line item are added/subtracted from the parent and subsidiary's figures for that line item because for some line items the adjustment figures are added but for some they are subtracted. I need urgent response. (Note: ABC Ltd is the parent company and XYZ Ltd is it's subsidiary).

Preparation of consolidation worksheet (amounts in thousands): Sales revenue Less Cost of goods sold Opening inventory Purchases Less Closing my Cost of goods sold Gross prot Add Interest revenue Add Dividend revenue Less Interest expense ABC XY -nn _ 10.0(a) 200(6) Less Other operating egg; - Prot before tax Less Income tax expense 170 Prot for the year $ 430 _ Add Retained earnings 1 1'00 ?.O(a) January 20X1 200.0(b) 40.0(e) 12 82 00 Less Dividend paid 100-001) 30 0 0 0 0 0 _ _ _ _ Share capital 1000.0(b) 6000.0 4000:) 6 Rm'mgs ----$ 1256'\" 31.12.X1 Generalresem WA 2 200 2 Other current assets Loan receivable _ Land 100.000 Buildings (we) m Lessdmdepreciaon Investment in sub _- Goodwill 95.00:) 60.066) 35.0 Totalassets $81450 E _ Borrowings payable _ 250.0(c) Other non-currentL $ 850.0 m Deferredtax liability 39.00;) 39.0 E=E $6880 $2050 checkthesetotals! 37256.0 EEE .m Shareholders' equity $688 E: Assets __ __ Inventory 3; 590 Z 240 12 28 200 50 150 0 050 0 40 480 250 E Liabilities _ _ $