Pup -NCI post acquisition profit

Hello Sir,

Why in the following exam question (I could not copy the question) the PUP at 240 k was not adjusted in the post acquisition profit of the NCI when we want to distribute the profit for the year in profit and loss

since the Journal entry is DR Retained Earnings of Parent
CR Inventory of the subsidiary

the question is from Financial Reporting
March/June 2021 exam (20/21 ,

Answer
Gold Co
(a) Goodwill
$’000 $’000 $’000
Consideration:
Deferred cash (90% x 16,000 x $2·42 x 0·9091) 31,680
Shares (90% x 16,000 x 3/5 x $8·40) 69,120 ––––––––
100,800
Non-controlling interest (NCI) (10% x 16,000 x $3·50) 5,600 ––––––––
106,400
Less: FV of net assets at acquisition
Equity shares 16,000
Retained earnings:
At 1 October 20X1 56,000
1 October 20X1–1 January 20X2 (9,920 x 3/12) 2,480 58,480 –––––––
Fair value adjustments:
Plant 2,600
Contingent liability (850) –––––––
(76,230) ––––––––
Goodwill 30,170 –––––––– ––––––––

b) Consolidated statement of profit or loss for the year ended 30 September 20X2
$’000
Revenue (103,360 + (60,800 x 9/12) – 5,400 (W1)) 143,560
Cost of sales (81,920 + (41,600 x 9/12) – 5,400 (W1) + 240 (W1) + 650 (W2)) (108,610) ––––––––
Gross profit 34,950
Distribution costs (2,560 + (2,980 x 9/12)) (4,795)
Administrative expenses (6,080 + (3,740 x 9/12)) (8,885)
Share of profit from associate (3,000 x 40%) 1,200
Finance costs (672 + 136 (W3) + 2,376 (W4)) (3,184) ––––––––
Profit before tax 19,284
Income tax expense (4,480 + (2,560 x 9/12)) (6,400) ––––––––
Profit for the year 12,886 ––––––––
Profit attributable to:
Owners of the parent 12,207
NCI (W5) 679 ––––––––
12,886 ––––––––
Workings
W1 – Intercompany and PUP
Post-acquisition sales = ($600 x 9) = $5,400
PUP = (1,200 x 25/125) = $240
W2 – FV depreciation on plant = ($2,600/3 x 9/12) = $650
W3 – Convertible loan – calculate liability component
$’000 DF 8% $’000
Liability:
Interest (10,000 x 6%) = 600 3·993 2,396
Principal 10,000 0·681 6,810 ––––––
Liability 9,206 –––––– ––––––
$’000
Interest charge to PL:
($9,206 x 8%) = 736
Interest already charged (600) ––––
136 –––– ––––
W4 – Deferred cash consideration
Unwinding of discount on deferred consideration (see goodwill calculation): $31,680 x 10% x 9/12 = $2,376
W5 – NCI
$’000
Silver’s profit for the year ($9,920 x 9/12) 7,440
FV Depreciation (W2) (650) ––––––
6,790 ––––––
NCI share 10% 679