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ACCA FR Chapter 24 Group statement of profit and loss Questions

VIVA

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Comments

  1. vanchin says

    July 24, 2023 at 12:59 pm

    For question 7, shouldnt Tour’s portion of the consol income be for 4 months (Oct – Jan) rather than 8 months . I calculated Tour’s portion as 90, so along with Tangier’s 260, it would be 350. Where did i go wrong

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    • nandy0130 says

      July 31, 2024 at 8:28 am

      during the post-acquisition period of 4 months, he gained double, so 4*2=8. {8X (pre-acquisition) and 8X (post-acquisition)}. Therefore 360*8/16 is 180 and 260+180 is 440, so the answer is $440

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  2. ibikunlet says

    July 2, 2023 at 7:58 pm

    I do not understand why $17,250 was added to the cost of sales in #3. I will appreciate an explanation of this.

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    • vanchin says

      July 24, 2023 at 1:00 pm

      that is the unrealised profit, which has to be added back after we account for intragroup sales of (55 x 12 = 660)

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  3. sh4n1 says

    September 26, 2020 at 3:26 pm

    @bulgermarina , that is to calculate the PURP, i.e. to reach at COS figure

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  4. stegeo says

    February 9, 2019 at 2:07 pm

    Hello, Could you please explain me how total revenue is calculated on questions 5, 6 and 7? Many thanks in advance.

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    • MikeLittle says

      February 9, 2019 at 7:46 pm

      If we have 3 months pre-acquisition and 9 months post-acquisition and post-acquisition monthly revenue is on average twice the pre-acquisition monthly revenue, then revenue for each of the 3 months pre-acquisition is, say, $1,000 and revenue for each of the 9 months post-acquisition is therefore $2,000

      So total revenue for the year is $3,000 + $18,000 = $21,000 of which $18,000 (or 18/21) relates to the post-acquisiiton period

      Now eliminate any intra-group revenue and there’s your answer

      Is that better?

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      • stegeo says

        February 10, 2019 at 1:26 pm

        That’s been cleared up now. Thank you for your prompt reply.

      • bulgermarina says

        May 19, 2020 at 8:17 pm

        Hello, could you please explain me: in question 5 « Whey had managed to sell only 1/5 from 25000 purchased ». Doesn’t it mean that we need to do adjustment only for 20000 left in the group? Thank you

      • Akunyili says

        May 4, 2022 at 7:49 am

        Please I still do not understand your explanation if how we calculated revenue in questions 5 to 7.

      • rezaul070797 says

        June 2, 2022 at 3:38 am

        Thank you Sir,
        for a great Explanation which make the context calculation clear.

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