This preview shows page 1. Sign up to view the full content.
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
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.
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...
View Full Document
- Spring '14