Unit 11 - Grp Rep - Consol Fin Stat

280 x 612 1040 other operating expenses 540 40 x 612

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Unformatted text preview: rofit 4,210 Distribution costs (490 + 160 x 6/12) (570) Administration expenses (900 + 280 x 6/12) (1,040) Other operating expenses (540 + 40 x 6/12) (560) Profit before tax Income tax expense (30 + 20 x 6/12) Profit for the year Attributable to : Equity holders of the parent (1,500 + 500 x 80%) Non-controlling interests (500 x 20%) 2,040 (40) 2,000 1,900 100 2,000 23 (e) Intragroup Transactions and Balances • When a subsidiary owes money to the holding company, the amount owing will be shown as a debtor in the holding company’s F/P and as a creditor in the subsidiary’s F/P. These debtor and creditor accounts between group companies are termed as intra-group current accounts. • These intra-group current accounts should be eliminated upon consolidation. The same treatment would apply to other debts owed by the holding company to the subsidiary or vice versa, no matter the debt is long-termed or short-termed. 24 Elimination of Intra-group Transactions & Balances (Current Accou...
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