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QUESTION 1 Picant plc, a public limited company is expanding the group business actively. On 1 January 2021, Picant plc acquired 80% interest in
QUESTION 1 Picant plc, a public limited company is expanding the group business actively. On 1 January 2021, Picant plc acquired 80% interest in Sander Ltd and 30% interest in Acquine Ltd. Picant plc is represented on Acquine Ltd's board of directors. Below is the statement of comprehensive income of Picant plc, Sander Ltd and Acquine Ltd for the year ended 31 December 2021. Picant plc ($'000) Sander Ltd ($*000) Acquine Ltd ($'000) Revenue Cost of sales 30,000 12,000 4,800 (16,000) (7,000) (2,700) Gross Profit 14,000 5,000 2,100 Operating expenses (8,200) (3.200) (900) Operating profit 5,800 1,800 1,200 Management services to 100 Sander Ltd Dividend from Sander Ltd 400 Finance Income 60 Finance cost (50) = Profit before tax 6,360 1,750 1200 Taxation (1,550) (460) (400) Profit after tax 4.810 1,290 800
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