Question
P Ltd acquired 60% of S Ltd in January 20x5. For the year ended 31 December 20x8, the profit after tax of P Ltd and
P Ltd acquired 60% of S Ltd in January 20x5. For the year ended 31 December 20x8, the "profit after tax" of P Ltd and S Ltd were respectively $70 million and $100 million. During 20x8, S Ltd sold goods to P Ltd, and it was determined that there was unrealized profit of $20 million as at 31 December 20x8 arising from this inter-company sales. In the 20x8 consolidated financial statements, the "Profit after tax attributable to shareholders of the parent" and the "Profit after tax attributable to non-controlling interest" should be respectively:
- $118 million and $40 million.
- None of the listed choices.
- $110 million and $40 million.
- $118 million and $32 million.
- $90 million and $32 million.
Which option is it?
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