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CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X6
Revenue (75 + 38) 113,000
Cost of sales (30 + 20) 50,000
Gross profit 63,000
Administrative expenses (14 + 8) 22,000
Profit before taxation 41,000
Income taxes (10 + 2) 12,000
Profit for the year 29,000
Profit attributable to:
Owners of the parent (bal. fig.) 27,000
Non-controlling interest (25% x 8) 2,000
29,000
Movement on retained earnings
Group profit for year 27,000
Retained earnings brought forward (87 + (17 x 75%)) 99,750
Retained earnings carried forward 126,750
Notice how the non-controlling interest (NCI) is dealt with: Down to the line ‘profit for the year’ the whole of S Co’s results is included without reference to group share or NCI share. Profit for the year is then split between the group and the NCI.
Sir, why in this example 27000 profit is called group profit rather than 29000…I confused about whether NCI is included in group or not..Thanks in advance 🙂The group made a profit of $29,000, and strictly that is the group profit.
The fact that $27,000 is attributable to the owners of the parent, and $2,000 belongs to the NCI determines how it is dealt with in the SOFP. $27,000 is added to the retained earnings, and $2,000 is added to the NCI.
The SOFP shows the total assets and liabilities of the group – the retained earnings and NCI show who it is owed to.
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