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Group Accounts The Consolidated Income Statement (part b)
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Acquisition part way through the year is a part of the F3 syllabus, not deferred till F7! (check syllabus area G.1.C. (V))
nice lecture……am luving it….. thumbs up
The lectures are really very helpful. Thanks!
why the consolidated tax figure does not change since the profit changed? thanks
@allanzhang2008, Tax is charged on the individual companies. The tax people do not change the tax payable because we consolidate – there remain two separate companies.
Very Good lectures – Thank you.
Can we calculate retained earnings or we have not enough information on this example?
Hi Very good lectures:)
Thank you
Can we calculate the movement of retained earnings or we have not enough information?
Regards
why did we subtracted $28000 from reveune & cost of sales in example 3?
whats the reason behind it?
@Miss A.., is it due to inter group transactions?
@Miss A.., Yes. Included in S’s sales is 28,000 of sales to P, and included in P’s cost of sales is 28,000 which is what they were charged by 3.
In the consolidated income statement we only want to show sales and purchases outside the group, and so 28,000 needs removing from sales and from cost of sales.
Nice Lecture..
Fantastic! I really enjoyed the joke about those that would be exempted from F3. The lecture makes things that appear difficult at first quite easy to understand. It’s a remarkable experience for me.
love it………thumbs up
lovely
good lecture:-)
why is the profit 2000? as the inventory that was “left” was 1/4th.. which should mean that that 1/4th is the “not sold” inventory and so the profit should be taken as 28000-7000+21000, 21000/1.4(mark up)=15000
so the profit should be 6,000. PLEASE TELL ME IF I’M WRONG.
@omarabbas, EDIT 28000-7000=21000 **
21000/1.4 (MARKUP) = 15000 COST PRICE
SO THE PROFIT SHOULD BE 21000 – 15000 = 6,000
@omarabbas, which question are you looking at?
@omarabbas, Hi, Ah, it’s an F3 problem! You are correct – the profit achieved IS $6,000. But the subsidiary has recognised the full $8,000 within its Income Statement whereas 1/4 of that profit has not in fact yet been achieved. That’s why the profit adjustment relates to the profit included within the closing inventory.
should goodwill be minus in consolidated income statement?
It was a nice lecture at the end