Page 355 - F1 Integrated Workbook STUDENT 2018

Consolidated Statement of Profit or Loss and Other Comprehensive
Income

Workings

(W1) Group structure

Zebedee
100%

(1 full
year)
Xavier

(W2) PUP

The goods were sold at a mark-up of 50% on cost so the unrealised profit is
stripped out by multiplying by 50/150. The profit is unrealised on only the
inventory remaining in Xavier at the reporting date.

$36,000 × 50/150 = $12,000

Zebedee sold the goods so the adjustment should be made in Zebedee's
column, i.e. the column of the seller.

(W3) COS

Cost of sales = parent $420 + sub $210 – intra-group sale $84 + PUP $12 =
$558

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