224 Greenwood Co - BPP Exam Kit - Ratio & Interpretation Question.

Hello Sir, My question is whether following profit and loss statement is including result of discontinued operation of Deadwood, as question mentioned it is consolidated..........if yes 1. Then while calculating ROCE Deadwoods, net asset removed from both the year buy why PBIT is not reduced which belongs to Deadwoods. 2. Where are the adjustment of that one off item loss on disposal of Deadwoods. 224 Greenwood Co 36 mins Greenwood Co is a public listed company. On 31 March 20X7 Greenwood Co sold its 80%-owned subsidiary –Deadwood Co – for $6 million. The directors have been advised that the disposal qualifies as a discontinued operation and it has been accounted for accordingly. The disposal proceeds were not collected until after the year end. Greenwood Co did not own any other subsidiaries. Extracts from Greenwood Co's financial statements are set out below. CONSOLIDATED STATEMENTS OF PROFIT OR LOSS FOR THE YR ENDED 31 MARCH 20X7 20X6 $'000 $'000 Revenue 27,500 21,200 Cost of sales (19,500) (15,000) Gross profit 8,000 6,200 Operating expenses 2,900) (2,450) 5,100 3,750 Finance costs (600) (250) Profit before taxation 4,500 3,500 Income tax expense (1,000) (800) Profit for the year from continuing operations 3,500 2,700 Profit/(loss) from discontinued operations (1,500) 320 Profit for the year 2,000 3,020 Profit attributable to: Owners of Greenwood 2,300 2,956 Non-controlling interest (300) 64 2,000 3,020