Question (3) The following is summarised information for Noor plc and its subsidiary, Bispham Ltd: Statements of comprehensive income for the year ended 30 September 20X7 Revenue Cost of sales Gross profit Administrative expenses Investment income Profit before tax Tax Profit after tax Noor plc 000 2000 (950) 1150 (300) 60 910 (98) 812 Bispham Ltd 000 900 (600) 300 (75) 25 250 (10) 240 Additional information: Noor plc acquired 320,000 shares in Bispham Ltd out of 400,000 shares on 1 October 20X4 when Bisphams has the following information: o Capital100,000 o retainedearnings40,000. o NCI is valued as a proportion of subsidiary net assets. Noor capital at acquisition date is 102,000 and did not change since acquisition. At this date, the fair values of Bisphams property, plant and equipment were agreed as 100,000 greater than their book values. These values were not incorporated into Bisphams books. Bispham has a 10% straight-line depreciation. The group policy is to charge depreciation expense to cost of sales. Noor has sold goods to Bispham during the year for 50,000, which included a 25% gross margin. At the year-end 20% of these inventories are sold by Bispham. The review for impairment of goodwill arising on acquisition made at 30 September 20X7 revealed that there was an impairment loss of 10,000. There had been no previous impairment loss. The group policy is to charge goodwill impairment loss to administrative expenses Retained earnings at 30 September 20X6 for Noor and Bispham were 320,000 and 90,000 respectively. Also, the capital of Noor did not change since acquisition date. Dividends paid by the companies during the year ended 30 September 20X7 were Noor 100,000 and Bispham 40,000. Required: 1. Prepare Noor plcs consolidated statement of profit or loss and consolidated statement of changes in equity for the year ended 30 September 20X7.

Question (3) The following is summarised information for Noor plc and its subsidiary, Bispham Ltd: Statements of comprehensive income for the year ended 30 September 207 Additional information: - Noor plc acquired 320,000 shares in Bispham Ltd out of 400,000 shares on 1 October 204 when Bispham's has the following information: - Capital 100,000 - retained earnings 40,000. - NCl is valued as a proportion of subsidiary net assets. - Noor capital at acquisition date is 102,000 and did not change since acquisition. - At this date, the fair values of Bispham's property, plant and equipment were agreed as 100,000 greater than their book values. These values were not incorporated into Bispham's books. Bispham has a 10% straight-line depreciation. The group policy is to charge depreciation expense to cost of sales. - Noor has sold goods to Bispham during the year for 50,000, which included a 25% gross margin. At the year-end 20% of these inventories are sold by Bispham. - The review for impairment of goodwill arising on acquisition made at 30 September 207 revealed that there was an impairment loss of 10,000. There had been no previous impairment loss. The group policy is to charge goodwill impairment loss to administrative expenses - Retained earnings at 30 September 206 for Noor and Bispham were 320,000 and 90,000 respectively. Also, the capital of Noor did not change since acquisition date. - Dividends paid by the companies during the year ended 30 September 207 were Noor 100,000 and Bispham 40,000. Required: 1. Prepare Noor plc's consolidated statement of profit or loss and consolidated Question (3) The following is summarised information for Noor plc and its subsidiary, Bispham Ltd: Statements of comprehensive income for the year ended 30 September 207 Additional information: - Noor plc acquired 320,000 shares in Bispham Ltd out of 400,000 shares on 1 October 204 when Bispham's has the following information: - Capital 100,000 - retained earnings 40,000. - NCl is valued as a proportion of subsidiary net assets. - Noor capital at acquisition date is 102,000 and did not change since acquisition. - At this date, the fair values of Bispham's property, plant and equipment were agreed as 100,000 greater than their book values. These values were not incorporated into Bispham's books. Bispham has a 10% straight-line depreciation. The group policy is to charge depreciation expense to cost of sales. - Noor has sold goods to Bispham during the year for 50,000, which included a 25% gross margin. At the year-end 20% of these inventories are sold by Bispham. - The review for impairment of goodwill arising on acquisition made at 30 September 207 revealed that there was an impairment loss of 10,000. There had been no previous impairment loss. The group policy is to charge goodwill impairment loss to administrative expenses - Retained earnings at 30 September 206 for Noor and Bispham were 320,000 and 90,000 respectively. Also, the capital of Noor did not change since acquisition date. - Dividends paid by the companies during the year ended 30 September 207 were Noor 100,000 and Bispham 40,000. Required: 1. Prepare Noor plc's consolidated statement of profit or loss and consolidated