STUDENTS
£m
Group profit on disposal of subsidiary (W9)
12.2
NCI at acquisition 1.1.2018 (W7)
8.0
NCI share of retained earnings 2019 & 2020 ($30m – $15m) x 20%
Re-measurement gain on equity investment (W4)
3.0
Operating expenses 420 + 480 + (6/12 x 180) + 1.5 (W5) + 4 (W10)
(995.5)
Finance costs 60 + 40 + (6/12 x 30)
(115.0)
Less fair value adjustments for 2019 & 2020 (0.6) ($15m / 10y) x 2 x 20% Plus share of profit for 2021 (W11)
3.1 13.5
$m
Cost of sales 3,600 + 3,100 + (6/12 x 2,300) – 20(W2) + 1(W2) Gross profit Other income 90 + 40 + (6/12 x 20) - 10 (W3)
Profit before taxation Profit after taxation
Amber: Consolidated statement of profit or loss for the year ended 31 December 2020 Revenue 4,500 + 3,600 + (6/12 x 2,500) – 20(W2)
Share of associate’s profit (20 x 9/12 x 35%) W6 Taxation 110 + 4 + (6/12 x 2)
And finally…
1.5
5.3 537.5 (115.0) 422.5
Attributable to: Owners of the parent
417.6
Non-controlling interest 3.1 + 1.8 (W11)
4.9 422.5
9,330.0 (7,831.0) 1,499.0 130.0
This article should give you some clarity on how to tackle these demanding consolidated questions and how to maximise your ability to earn vital marks. ●
Tolley®Guidance Our experts guide you through the latest developments in tax, explaining the implications and what workflow actions are needed for you and your clients.
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of practical tax guidance RELX (UK) Limited, trading as LexisNexis®. Registered office 1-3 Strand London WC2N 5JR. Registered in England number 2746621. VAT Registered No. GB 730 8595 20. LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. © 2021 LexisNexis. The information in this document is current as of May 2021 and is subject to change without notice.
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