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Dear Tutors,
How do we know if finance cost from the loan note had not been included in the 1.3mio profit of Dorset Co? Thanks!
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Brigham Co has owned 70% of Dorset Co for many years. It also holds a $5 million 8% loan note from Dorset Co. One of Dorset Co’s non-current assets has suffered on impairment of S50.000 during the year. There is a balance in the revaluation surplus of Dorset Co of S30,000 in respect of this osset. The impairment loss has not yet been recorded. The entity financial statements of Dorset Co show a profit for the year of $1.3 million.
What is the amount attributable to the non-controlling interests in the consolidated statement of profit or loss? ”
Hi,
Interest is recorded on an accruals basis and so we would have to assume it has been recorded unless told otherwise.
Thanks
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