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ACCA FR Chapter 24 Group statement of profit and loss Questions

VIVA Subject Guide

10 Comments

  1. van
    that is the unrealised profit, which has to be added back after we account for intragroup sales of (55 x 12 = 660)
  2. van
    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
  3. Suriya Nanthini P
    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
  4. Hassan Bashir Ahmad
    @bulgermarina , that is to calculate the PURP, i.e. to reach at COS figure
  5. Ster
    Hello, Could you please explain me how total revenue is calculated on questions 5, 6 and 7? Many thanks in advance.
  6. MikeLittleTutor
    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?
  7. Ster
    That's been cleared up now. Thank you for your prompt reply.
  8. Marina
    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
  9. Uchenna
    Please I still do not understand your explanation if how we calculated revenue in questions 5 to 7.
  10. rezaul070797
    Thank you Sir,
    for a great Explanation which make the context calculation clear.

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