I have been advised by the scheme actuary that at 31 May 2010 the fair value of the pension assets
was £2.08 million and the present value of pension obligations was £2.75 million at that date.
We conducted an impairment review of goodwill at the end of our accounting period and estimated
that goodwill arising on the acquisition of Dipper was worth £1.1 million. I have therefore debited
£400,000 to other comprehensive income. No other adjustments were required to goodwill.
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© The Institute of Chartered Accountants in England and Wales 2010
4 of 16
Exhibit 2: Draft consolidated statement of comprehensive income for year ended 31 May 2010
Income statement
2010
2009
£'000
£'000
Revenue
14,725
13,330
Cost of sales
(7,450)
(7,560)
Gross profit
7,275
5,770
Operating costs
(3,296)
(3,007)
Other operating income
150
-
Operating profit
4,129
2,763
Investment income
39
32
Finance costs
(452)
(468)
Profit before tax
3,716
2,327
Income tax expense
(1,003)
(628)
Profit after tax
2,713
1,699
Other comprehensive income
Goodwill impairment
(400)
-
Total comprehensive income for the year
2,313
1,699
NOTE:
All calculations should be to the nearest £’000
