Page 353 - F1 Integrated Workbook STUDENT 2018

Consolidated Statement of Profit or Loss and Other Comprehensive
Income

Solution

For the purpose of teaching we will follow these steps to answer a CSPL
question:

(1) Prepare the CSPL proforma with a column for the parent, each
subsidiary, adjustments and a final column for the consolidated figures.

(2) Prepare W1 Group structure to determine the subsidiary status of each
entity and add dates to highlight any mid-year acquisitions and the
number of months since control was acquired.

(3) Complete the proforma with the parent and subsidiary's figures from the
question. Take care to note any mid-year acquisitions from W1 and to
time apportion the subsidiary's income and expenses.

(4) Review the extra information in the question to determine any
adjustments required. Calculate the adjustment needed in a separate
working to ensure your workings are clear.

(5) Look out for dividend income from the subsidiary in the parent's books as
this must be eliminated.

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