Summarised consolidated statement of comprehensive income for the A group for the year ended 30 September 2010 All workings in A$000

Total

A$000

Revenue (4,600 +3,385(W1))

7,985

Costs and expenses (3,700+2,462(W1))

(6,162)

Share of associate's profit (W3)

160

Profit before tax

1,983

Income tax expense (200+231(W1))

(431)

Profit for the year

1,552

Other comprehensive income

Revaluation gains net of tax (200+185(W1))

385

Share of associate's OCI (W3)

28

FOREX gain in year (W4)

803

Total OCI

1,216

Total comprehensive income

2,768

PFY attributable to:

Equity holders of the parent

1,414

Non-controlling interest (W5)

138

1,552

TCI attributable to:

Equity holders of the parent

2,432

Non-controlling interest (W5)

336

2,768

Consolidated statement of financial position for the A group as at 30 September 2010 (all workings in A$000)

A$000

Assets

Non-current assets

Property, plant and equipment (7,000 + 6,349 (W1))

13,349

Goodwill (W2)

635

Investment in associate (W6)

1,220

15,204

Current assets (3,000 + 3,175 (W1))

6,175

Total assets

21,379

Equity and liabilities

Equity attributable to the parent

Share capital

2,000

Retained reserves (W8)

13,522

15,522

Non-controlling interest (W7)

1,476

Total equity

16,998

Current liabilities (2,000 + 2,381(W1))

4,381

Total equity and liabilities

21,379

Workings Financial Management May 2011 7 W1 Translation of B

B$000

Rate

A$000

Statement of comprehensive income

@ avge rate

Revenue

2,200

A$/B$0.65

3,385

Cost of sales and expenses

(1,600)

A$/B$0.65

(2,462)

Profit before tax

600

923

Income tax

(150)

A$/B$0.65

(231)

Profit for year

450

692

Other comprehensive income:

Revaluation gains on PPE

120

A$/B$0.65

185

Total OCI

120

185

Total comprehensive income

570

877

Statement of financial position

Non-current assets

Property, plant and equipment

4,000

@CR B$0.63

6,349

Current assets

2,000

@CR B$0.63

3,175

6,000

9,524

Equity and liabilities

Share capital

1,000

@HR B$0.50

2,000

Pre-acquisition reserves

1,800

@HR B$0.50

3,600

Post-acquisition reserves

1,700

Bal fig

1,543

Total equity

4,500

7,143

Current liabilities

1,500

@CR B$0.63

2,381

6,000

9,524

W2 Goodwill

B$000

Rate

A$000

Consideration transferred

2,600

A$/B$0.50

5,200

NCI @ FV

600

A$/B$0.50

1,200

NA acquired:

Share capital

(1,000)

A$/B$0.50

(2,000)

Retained earnings

(1,800)

A$/B$0.50

(3,600)

Goodwill at 1 October 2007

400

800

FOREX loss (balancing figure)

(237)

Goodwill at 30 September 2009

400

A$/B$0.71

563

FOREX gain (balancing figure)

72

Goodwill at 30 September 2010

400

A$/B$0.63

635

W3 Share of associate's profit/OCI

A$000

Share of associate's PFY (40% x A$400,000)

160

Share of associate's other comprehensive income (40% x A$70,000)

28

W4 FOREX gains/losses in the year

A$000

Closing net assets @ CR (B$4,500,000/0.63) or from W1

7,143

Less opening net assets @ OR ((B$4,500,000 less TCI B$570,000)/0.71)

(5,535)

Less TCI for year @ average rate (B$570,000/0.65)

(877)

FOREX gain on translation of subsidiary's net assets

731

Plus FOREX gain on translation of goodwill

72

Total FOREX gains on translation of subsidiary

803

W5 NCI share of PFY/TCI in year

PFY

TCI

A$000

A$000

Subsidiary's PFY/TCI (W1)

692

877

20% share

138

175

FOREX gain on translation of subsidiary (20% x A$803,000)

___

161

138

336

W6 Investment in associate

A$000

Investment at cost

900

Plus share of post-acquisition reserves 40% x (A$1,500,000 - A$700,000)

320

1,220

W7 Non-controlling interest

A$000

NCI on acquisition (W2)

1,200

NCI share of post-acquisition reserves of subsidiary (20%xA$1,543,000(W1))

309

NCI share of net FOREX losses on translation of goodwill (20% x A$(237,000-72,000))

(33)

NCI at 30 September 2010

1,476

W8 Reserves

A

B

A$000

A$000

As per SOFP

12,100

5,143

Less pre-acquisition reserves (W1)

(3,600)

1,543

Group share 80% x A$1,543,000

1,234

Group share of associate's post-acquisition reserves (W6)

320

Group share of net FOREX losses on translation of goodwill (80% x A$(237,000-72,000))

(132)

Group reserves

13,522