QUESTION 1 VIOLET LIMITED AND ITS SUBSIDIARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED31 MARCH 2011 Gross profit [Gross profit both companies + (Additional information 3: Intragroup sales 880 000 880000) (Additional Information 3: Inventories Tulip limited purchased from violet – – limited at cost plus 25%)] Other expenses (Depreciation : Plant and equipment of both companies Additional – information 4 Depreciation of machine sold to Violet limited from 31 March 2010 to 31 March 2011 + Other expenses of both companies) Finance costs [Interest paid on bank overdraft + (Interest paid on debentures Interest – received on debentures) Profit before tax Income tax expense (Income tax expense from both companies) Profit for the year Other comprehensive income Total comprehensive income for the year Profit attributable to: Owners of the parent (balancing figure) Non-controlling interest (transfer the value of CURRENT YEAR: Profit for the year: Non controlling interest here) (Transfer profit for the year figure here) Total comprehensive income attributable to: Owners of the parent (balancing figure) Non-controlling interest (transfer the value of CURRENT YEAR: Profit for the year: Non controlling interest here) (Transfer profit for the year figure here) 1.2 1.2.1 Property, plant and equipment [(Property at valuation companies+ (Plant and equipment at cost both companies Profit on – sale) (Accumulated depreciation: Plant and equipment for both companies additional – – information 4: depreciation for 6 months on machine sold additional information 4: – depreciation for 12 months on machine purchased)] 1.2.2 Inventory (Inventories for both companies Additional Information 3: Inventories Tulip – limited purchased from violet limited at cost plus 25%) 1.2.3 Retained earnings (Retained earnings for Violet limited+ Retained earnings since acquisition + Owners of - Revaluation Surplus at acquisition) parent’s soci 1.2.4 Non-controlling interest (All items from the NON Controlling interest line in the calculations)
QUESTION 1 VIOLET LIMITED AND ITS SUBSIDIARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED31 MARCH 2011 Gross profit [Gross profit both companies + (Additional information 3: Intragroup sales 880 000 – 880000) – (Additional Information 3: Inventories Tulip limited purchased from violet limited at cost plus 25%)] Other expenses (Depreciation : Plant and equipment of both companies – Additional information 4 Depreciation of machine sold to Violet limited from 31 March 2010 to 31 March 2011 + Other expenses of both companies) Finance costs [Interest paid on bank overdraft + (Interest paid on debentures – Interest received on debentures) Profit before tax Income tax expense (Income tax expense from both companies) Profit for the year Other comprehensive income Total comprehensive income for the year Profit attributable to: Owners of the parent (balancing figure) Non-controlling interest (transfer the value of CURRENT YEAR: Profit for the year: Non controlling interest here) (Transfer profit for the year figure here) Total comprehensive income attributable to: Owners of the parent (balancing figure) Non-controlling interest (transfer the value of CURRENT YEAR: Profit for the year: Non controlling interest here) (Transfer profit for the year figure here) 1.2 1.2.1 Property, plant and equipment [(Property at valuation companies+ (Plant and equipment at cost both companies – Profit on sale) – (Accumulated depreciation: Plant and equipment for both companies – additional information 4: depreciation for 6 months on machine sold – additional information 4: depreciation for 12 months on machine purchased)] 1.2.2 Inventory (Inventories for both companies – Additional Information 3: Inventories Tulip limited purchased from violet limited at cost plus 25%) 1.2.3 Retained earnings (Retained earnings for Violet limited+ Retained earnings since acquisition + Owners of parent’s soci - Revaluation Surplus at acquisition) 1.2.4 Non-controlling interest (All items from the NON Controlling interest line in the calculations)
FAC2602-QUESTION-1-Assignment-3-Explanations-of-values.docx