December, 2012 Victory Happy Adjustments Group GH¢ GH¢ GH¢ Sales Revenue 400,000 150,000 (1.2*1000) 548,800 Cost of sales 300,000 100,000 -1,200+100 398,900 Gross Profit 100,000 50,000 149,900 Operating Expenses (60,000) (47,000) (107,000) Goodwill impaired Step 6 (1,500) Operating Profit 40,000 3,000 41,400 Equity income from Comfort 25%*5,000 1,250 Profit before tax 40,000 3,000 42,650 Tax (13,000) (1,000) 25*1,500 (14,375) Profit for the year 27,000 2,000 28,275 Attributable to NCI 380 Group 27,895 Victory Ltd Group Consolidated Statement of Financial Position as at 31 December, 2012 Victory Happy Adjustments Group GH¢ GH¢ GH¢ Non-current Assets PPE 610,000 20,500 500 631,000 Investment 41,000 (41,000-41,000) NIL Investment in Comfort 12,000 1,400 13,400 Goodwill Step 6 8,300 652,700 Current assets Inventories 188,000 9,000 (100) 196,900 Receivables 130,000 21,000 151,000 Current account 3,200 Step 2 NIL Cash bank 6,000 1,500 7,500 355,400 TOTAL ASSETS 1,008,100 EQUITY AND LIABILITIES Equity Stated capital 356,000 20,000 Step 10 356,000 Income Surplus 417,830 4,500 Step 8 418,450 774,450 NCI Step 7 4,980 Total Equity 779,430 Liabilities Trade other payables 178,000 25,500 203,500 Taxation 23,170 2,000 Step 2 25,170
228,670 1,008,100 JAY: I can see that you consolidated only the share capital of Victory (the Parent) and showed a Step 10. What is the content of Step 10? KO: STEP 10: CONSOLIDATED EQUITY CAPITAL. In basic group accounting, you should always use the share capital of the parent company.
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