pre post profit

PANDAR (Dec 09 past exam).

Sir, there are so much words and figures, therefore please allow me to write down bullet points sorry.

ii) Immediately after its acquisition of Salva, Pandar invested $50 M in an 8% loan not from Salva. All interest accruing to 30 Spetember 2009 has been accounted for by both companies. Salva also has other loans in issue at 30 Septemebr 2009.

What i want to know is how this pre and post RE questions affect SOPL and SOPF elements.

Salva

invest income.. 2000
salva pat………21000
…………………..23000

pre
23000*6/12=11500
post
21000-11500=9500

this bullet point affects Finance costs, NCI porfit( cuz post RE 9500 must be used to calculate NCI profit), W2(Subsidiary net asset cuz post of 9500 is used and FVNA@DOA can be taken).

all the elements above are the elements that affect SOPL.

Now i jot down elements that affect SOFP. ( this is just “what if” question cuz i haven’t met this kind of question that asks me to make Consolidated SOFP)

Loan $50M in SOFP
the Finance cost of 2000 should be added to CRE(consolidated Retained Earning)(not sure)

the adjusted elements above in SOPF are correct?

BYCOMB ( past exam june 15)

this is the other question that requires me to get pre and post RE with interests.

ii) On 1 April 2014, Cyclip commenced the construction of a new production facility, financing this by a bank loan. Cyclip has followed the local GAAP in the country where it operated which prohibits the capitalisation of interest. Bycomb has calculated that, in accordance with IAS 23 Borrowing Costs, interest of $100,000(which accrued evenly throughout the year) would have been capitalised at 31 March 2015. The production facility is still under construction as at 31 March 2015.

PAT 2400
int ..100
……..2500
pre 625
post 1775

In fact, this question doesn’t ask to get elements in SOFP. this is also “what if” question sir

affected elements in SOPL are NCI profit, Finance cost, and W2(Subsidiary Net Asset)

affected elements in SOFP are CRE and NCA(interest of 1000)

know clearly how they work in SOPL but am not sure of how they work in SOFP.

thank you for your help:)