Below are the statements of comprehensive income of Akai, its subsidiary Shinto and associate Abe for...

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Below are the statements of comprehensive income of Akai, its subsidiary Shinto and associate Abe for the year ended 31 March 2022. Akai, Shinto and Abe are public limited companies. Revenue Cost of sales Gross profit Operating expenses Profit from operations Dividends receivable Investment income Interest payable Net profit before tax Taxation Profit for the year Akai $'000 16,400 (5,600) 10,800 (5.780) 5,020 1,247 233 (333) 6,167 (1,800) 4,367 Shinto $'000 8,870 (4.200) 4,670 (3.370) 1,300 600 97 (240) 1,757 (500) 1,257 Abe $'000 13,800 (5.900) 7,900 (4.700) 3,200 0 140 (350) 2,990 (700) 2,290 You are also given the following information: i) Shinto is a subsidiary of Akai. Akai owns 60% of the ordinary shares in Shinto. On 1 April 2020 Akai acquired 60,000,000 million shares of the 100,000,000 shares by an exchange of one share in Akai for every one share in Shinto, plus $ 1.25 per acquired Shinto share in cash. The market price of each Akai share at the date of acquisition was $ 3.00 and the market price of each Shinto share at the date of acquisition was $2.20. The par value of the share of both companies are $ 1.00 each. The fair value of net assets of Shinto at the date of acquisition was $ 200,000,000.00 ii) Abe is an associate of Akai. Akai owns 30% of the ordinary share in Abe and was acquired on 1 April 2021. iii) During the financial year ended 31 March 2022 Shinto sold goods to Akai. The invoice value of these sales to Akai was $ 1,500,000. Shinto sells its goods to Akai at cost plus a mark-up of 20%. 10% of these goods remain unsold as at 31 March 2022. iv) The dividends receivable by Akai is including the dividends from Shinto and Abe. vi) The goodwill impairment loss on the purchase of Shinto for the year ended 31 March 2022 was $ 1,000,000. Impairment of goodwill is charged as part of the operating expenses. vii) The non-controlling Interest (NCI) in Shinto is valued at the fair value in accordance with the revised NZ IFRS 3 (Business Combination). viii) Dividends payable by the three companies for the year ended 31 March 2022 were: Akai Ordinary dividends - $ 2,000,000 Shinto Ordinary dividends - $ 700,000 Abe Ordinary dividends - $ 1,500,000 Required: a) Prepare the consolidated statement of comprehensive income for the year ended 31 March 2022 for Akai, incorporating its subsidiary and associate. (show all your workings clearly) b) Briefly explain the meaning of 'significant influence' in the context of 'NZ IAS 28- Investment in Associates and Joint Ventures'. Below are the statements of comprehensive income of Akai, its subsidiary Shinto and associate Abe for the year ended 31 March 2022. Akai, Shinto and Abe are public limited companies. Revenue Cost of sales Gross profit Operating expenses Profit from operations Dividends receivable Investment income Interest payable Net profit before tax Taxation Profit for the year Akai $'000 16,400 (5,600) 10,800 (5.780) 5,020 1,247 233 (333) 6,167 (1,800) 4,367 Shinto $'000 8,870 (4.200) 4,670 (3.370) 1,300 600 97 (240) 1,757 (500) 1,257 Abe $'000 13,800 (5.900) 7,900 (4.700) 3,200 0 140 (350) 2,990 (700) 2,290 You are also given the following information: i) Shinto is a subsidiary of Akai. Akai owns 60% of the ordinary shares in Shinto. On 1 April 2020 Akai acquired 60,000,000 million shares of the 100,000,000 shares by an exchange of one share in Akai for every one share in Shinto, plus $ 1.25 per acquired Shinto share in cash. The market price of each Akai share at the date of acquisition was $ 3.00 and the market price of each Shinto share at the date of acquisition was $2.20. The par value of the share of both companies are $ 1.00 each. The fair value of net assets of Shinto at the date of acquisition was $ 200,000,000.00 ii) Abe is an associate of Akai. Akai owns 30% of the ordinary share in Abe and was acquired on 1 April 2021. iii) During the financial year ended 31 March 2022 Shinto sold goods to Akai. The invoice value of these sales to Akai was $ 1,500,000. Shinto sells its goods to Akai at cost plus a mark-up of 20%. 10% of these goods remain unsold as at 31 March 2022. iv) The dividends receivable by Akai is including the dividends from Shinto and Abe. vi) The goodwill impairment loss on the purchase of Shinto for the year ended 31 March 2022 was $ 1,000,000. Impairment of goodwill is charged as part of the operating expenses. vii) The non-controlling Interest (NCI) in Shinto is valued at the fair value in accordance with the revised NZ IFRS 3 (Business Combination). viii) Dividends payable by the three companies for the year ended 31 March 2022 were: Akai Ordinary dividends - $ 2,000,000 Shinto Ordinary dividends - $ 700,000 Abe Ordinary dividends - $ 1,500,000 Required: a) Prepare the consolidated statement of comprehensive income for the year ended 31 March 2022 for Akai, incorporating its subsidiary and associate. (show all your workings clearly) b) Briefly explain the meaning of 'significant influence' in the context of 'NZ IAS 28- Investment in Associates and Joint Ventures'.

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a Consolidated statement of comprehensive income for the year ended 31 March 2022 Akai and Subsidiaries Statement of Comprehensive Income For the year ended 31 March 2022 000 Revenue Akai 16400 Shinto ... View the full answer