Planet ple, a public limited company is expanding the group business. On 1 January 2020, Planet plc acquired 75% interest in Space Ltd and 25% interest in Acro Lad. Planet ple is represented on Aero Lid's board of directors Below are the statement of comprehensive income of Planct plc, Space Ltd and Aero Lid for the year ended 31 December 2020 45.000.000 puting und TS 2 Thai | Additional information ) Planet plc trades with Space Ltd and during the year. Planet ple sold goods for $3,000,000 to Space Lid. i) Planet plc sells to Space Lid at cost plus 25%. Half of these goods remain unsold in Space Lid. iii) Planet ple has recognized a dividend declared and paid by Space Ltd of S600,000 during the year iv) Included in the operating expenses of Space Lid is an amount of $200,000 management fees charged by Planet ple for the services provided v) Planet plc charges Space Ltd 4% interest for the advances of $5,000,000 granted to Space Lad on 1 July 2020. vi) Investment in Aero Lid is impaired by $50,000 REQUIRED (a) Prepare the consolidated statement of comprehensive income for the year ended 31 December 2020. (Show all (15 marks) (b) After the above statement presented to the directors, the operation director is questioning as to how to derive at the Group Revenue and why the Revenue of Acro Ltd has not been included as part of the Group Revenue. As a group accountant, give your explanation with justification to the director by referring to the relevant accounting standards Planet ple, a public limited company is expanding the group business. On 1 January 2020, Planet plc acquired 75% interest in Space Ltd and 25% interest in Acro Lad. Planet ple is represented on Aero Lid's board of directors Below are the statement of comprehensive income of Planct plc, Space Ltd and Aero Lid for the year ended 31 December 2020 45.000.000 puting und TS 2 Thai | Additional information ) Planet plc trades with Space Ltd and during the year. Planet ple sold goods for $3,000,000 to Space Lid. i) Planet plc sells to Space Lid at cost plus 25%. Half of these goods remain unsold in Space Lid. iii) Planet ple has recognized a dividend declared and paid by Space Ltd of S600,000 during the year iv) Included in the operating expenses of Space Lid is an amount of $200,000 management fees charged by Planet ple for the services provided v) Planet plc charges Space Ltd 4% interest for the advances of $5,000,000 granted to Space Lad on 1 July 2020. vi) Investment in Aero Lid is impaired by $50,000 REQUIRED (a) Prepare the consolidated statement of comprehensive income for the year ended 31 December 2020. (Show all (15 marks) (b) After the above statement presented to the directors, the operation director is questioning as to how to derive at the Group Revenue and why the Revenue of Acro Ltd has not been included as part of the Group Revenue. As a group accountant, give your explanation with justification to the director by referring to the relevant accounting standards
