Set out beion are the draht iutarents of prodit of loas of Pruness ang ts nifidary company suetanas for the year anded 31 Decenione 207. On 1 Jaruary 205 Prunes purchased 75.000 of Sultanas botal athare cosital of 100.0095 t cedinary sharea. Statemente of profit or loss for the year ended at December 20x? The following additional information is relevant (i) During tie year butanas soid goods in Prunes for sso. oco, maing the elod of the yew, the rust were stili in imininion? (1). Goodiali has been subject b an incement never at the end of cach year aince aopusition and the nevinw at the end of the curnent year revealed a further inpeinnent of $5.000 krowinent is to te recognised as on operating ceat. (ii) At the dale of apguaiton a fair value adfustment was made and itat has resuhed in an additional depreciaton chenee for the curnentyea of $15.000. it it group poicy that al deprecaticn is cherged to coet of salen. (iv) Pranes values the non-controling intarest iseng the fair valie Prathod 2 Congitetan remplataded prape fro the pear b. fopare Be nefociated at mone siatriant. Set out below are the dratt statements of profit or loss of Prunes and its. subsidiary company Sultanas for the year ended 31 December 207. On 1 January 206 Prunes purchased 75,000 of Sultanas' total share capial of 100,000$1 ordinary shares. Statements of profit or loss for the year ended 31 December 207 The following additional information is relevant: (t) During the year Sultanas sold goods to Prunes for $20,000. making a mark-up of one third. Only 20% of these goods were sold beiore the end of the year, the rest were still in inventory. (ii) Goodwill has been subject to an impairment review at the end of each year since acquisition and the review at the end of the current year revealed a further impairment of $5,000. Impaiment is to be recognised as an operating cost. (iii) At the date of acquisition a fair value adjustment was made and this has resulted in an additional depreciation charge for the current year of $15,000. It is group policy that all depreciation is charged to cost of sales. (iv) Prunes values the non-controlling interest using the fair value method. Requirements: 1-Compute the provision for unrealized profit. 2-Compute the consolidated profit for the year. 3-Prepare the consolidated income statement. 4-Compute the profit attributable to non controlling interest. 5-Compute the profit attributable to controlling interest. Set out below are the dratt statements of profit or loss of Prunes and its. subsidiary company Sultanas for the year ended 31 December 207. On 1 January 206 Prunes purchased 75,000 of Sultanas' total share capial of 100,000$1 ordinary shares. Statements of profit or loss for the year ended 31 December 207 The following additional information is relevant: (t) During the year Sultanas sold goods to Prunes for $20,000. making a mark-up of one third. Only 20% of these goods were sold beiore the end of the year, the rest were still in inventory. (ii) Goodwill has been subject to an impairment review at the end of each year since acquisition and the review at the end of the current year revealed a further impairment of $5,000. Impaiment is to be recognised as an operating cost. (iii) At the date of acquisition a fair value adjustment was made and this has resulted in an additional depreciation charge for the current year of $15,000. It is group policy that all depreciation is charged to cost of sales. (iv) Prunes values the non-controlling interest using the fair value method. Requirements: 1-Compute the provision for unrealized profit. 2-Compute the consolidated profit for the year. 3-Prepare the consolidated income statement. 4-Compute the profit attributable to non controlling interest. 5-Compute the profit attributable to controlling interest
