business-reporting-july-2010-exam-paper

I have been advised by the scheme actuary that at 31

Info icon This preview shows pages 3–6. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
© 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
Image of page 4