Page 257 - SBR Integrated Workbook STUDENT S18-J19

Group accounting – Basic groups

On the proforma:

 pro-rate the subsidiary’s results if it has been acquired mid-year

 eliminate intragroup income and expenses, unrealised profits on intra-group
transactions, as well as any dividends received from the subsidiary.

3.2 Share of profit of associate

Associates are accounted for using the equity method.

A single figure will be presented in the consolidated statement of profit or loss,
calculated as follows:

$m
P’s % of associate’s profit after tax X
Current year impairment (X)
––––
Share of profit of associate X
––––

In OCI, the group will show its share of the associate’s OCI (if applicable).

3.3 NCI share of profit/TCI

This should be calculated as follows:

$m
Subsidiary’s profit for the year X
PURP if subsidiary is seller (X)
Depreciation on fair value adjustment (X)
Impairment (if fair value method used) (X)

–––
Adjusted profit for the year X
Other comprehensive income Y
–––

Adjusted total comprehensive income (TCI) Z
–––
NCI share of profit = $X × NCI%

NCI share of TCI = $Z × NCI%

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