Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following was extracted from the accounting records of C Limited for the year ended 31 December 2017 (this was the only information given to

The following was extracted from the accounting records of C Limited for the year ended 31 December 2017 (this was the only information given to the Chief Operating Decision Maker):

Segment A

$

Segment A

$

Head office

$

sales

10,650,000

12,400,000

-

Profit/(loss) before tax

5,565,000

6,124,000

(633,000)

Income tax expense

(1,474,200)

(1,714,720)

177,240

Profit/(loss) after tax

4,090,800

4,409,280

(455,760)

Note; information of segments A & B is to be disclosed.

Notes

1. Segment B sold goods to the value of P500 000 to Segment A.

2. Segment A sold all the goods to external customers and therefore had no stock on hand

3. Profit of Segment A includes a dividend received from Segment B of P300 000

4. Profit of Segment A includes interest paid on loan from Segment B of P50 000. Segment B accounted for P50 000 as interest received.

5. The tax rate was 28%

The following is an extract from the financial statements of C Limited

$

Revenue 22,550,000

Profit before tax 10,756,000

Income tax expense 3,011,680

Profit after tax 7,744,320

Required: 

Prepare the segment information of C Limited as it would appear in the notes for the year ended 31 December 2017. Your answer should comply with IFRS 8. 

Step by Step Solution

3.54 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

Segment information Segment A Sales 10650000 Profitloss before tax 5565000 Income tax exp... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting and Reporting

Authors: Barry Elliott, Jamie Elliott

14th Edition

978-0273744535, 273744445, 273744534, 978-0273744443

More Books

Students also viewed these Accounting questions

Question

Why is it important to analyze your spending habits?

Answered: 1 week ago