Page 479 - SBR Integrated Workbook STUDENT S18-J19

Answers

Example 3 – continued

(W1) Group structure

Coaster

Waltzer Cakewalk Bumper

90% 70% 40%

9/12 year 10/12 year

(W2) Share of profit of associate

$36m × 10/12 × 40% = $12 million

(W3) Profit on disposal in Coaster’s individual financial statements

$m
Proceeds 79

Carrying amount (50)

––––
Profit 29
––––

This profit has been recorded in investment income so must be removed.

473