The consolidated statement of financial position for MIC as at 31 March 2009 and its comparative for
Question:
The consolidated income statement for MIC for the year ended 31 March 2009 is shown below:
........................................................................................ $000
Revenue .......................................................................... 12 000
Cost of sales ...................................................................... (8,400)
Gross profit ....................................................................... 3 600
Distribution costs ................................................................. (400)
Administrative expenses ...................................................... (1 260)
Finance costs ...................................................................... (450)
$000
Share of profit of
500
associate
Profit before tax
1 990
Income tax expense
(600)
PROFIT FOR THE YEAR
1 390
Attributable to:
Owners of the parent
1 200
Non-controlling interest
190
1 390
Additional information:
1. There were no disposals of property, plant and equipment in the year. Depreciation charged in arriving at profit totaled $1,800,000.
2. MIC acquired 90% of the ordinary share capital of GH on 1 December 2008 for a cash consideration of $460,000 plus the issue of 1 million $1 ordinary shares in MIC, which had a deemed value of $3.60 per share at the date of acquisition. The fair values of the net assets acquired were as follows:
$000
Property, plant and equipment
800
Inventories
2 200
Receivables
700
Cash and cash equivalents
200
Payables
(500)
3 400
MIC made no other purchases or sales of investments in the year. The group policy is to value the non-controlling interest at acquisition at the proportionate share of the fair value of the net assets.
3. Finance costs include interest on loans and any gains or losses on held for trading investments. All interest due was paid in the year.
Required:
Prepare the consolidated statement of cash flows for MIC for the year ended 31 March 2009.
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...
Step by Step Answer:
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen