Arnold plc owns 75 per cent of the ordinary shares of Baker plc. The outline income statements
Question:
Required:
Prepare the consolidated (group) income statement for Arnold plc and its subsidiary for the year ended 31 December.
Income statements for the year ended 31 December Baker plc Arnold plc £m £m Revenue 83 47 Cost of sales (36) (19) Gross profit Administration expenses 47 28 (14) (7) (10) Distribution expenses (21) Profit before taxation 12 11 Taxation (4) (3) Profit for the year
Step by Step Answer:
Arnold plc Group income statement for the year ended 31 December m Reven...View the full answer
Financial Accounting for Decision Makers
ISBN: 978-0273763451
6th Edition
Authors: Peter Atrill, Eddie McLaney
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Financial statements of a business having numerous divisions or subsidiaries are called consolidated financial statements. Companies frequently refer to the aggregated reporting of their entire firm together when using the term \"consolidated\" in financial statement reporting. Consolidated financial statement reporting, on the other hand, is defined by the Financial Accounting Standards Board as the reporting of an entity that is organized with a parent company and subsidiaries.
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