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Following are the statement of profit or loss for Pizam and Plutka for the year ending 31 December 2016.
| Pizam | Plutka | |
| Revenue | 50000 | 20000 |
| COGS | -33500 | -9750 |
| _________ | _________ | |
| Gross profit | 16500 | 10250 |
| Distribution cost | -5280 | -1830 |
| Admin expense | -6234 | -5324 |
| _________ | _________ | |
| Profit before interest and tax | 4986 | 3096 |
| Interest expense | -300 | -100 |
| Tax | -400 | -50 |
| _________ | _________ | |
| Profit for the period | 4286 | 2946 |
(i) Pizam acquired 70% of Plutka on 1 July 2016 for $56,000 when the net asset of the company was $60,000 and the fair value of NCI was $12,000. Goodwill arising on acquisition of Java is impaired by 10%.
(ii) During the post acquisition period Pizam sold goods to Plutka for $2,000, which had cost of $800. Plutka retains 40% of these goods in the inventory on 31 December 2016.
(iii) Profit or loss incurred evenly throughout the year.
Requirements:
Prepare the consolidated statement of profit or loss for Pizam group for the year ending 31 December 2016
Answers submitted
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