The consolidated income statement for AB Group for the year ended 30 June 2010:

(all amounts in the workings are in $000, unless stated otherwise)

$000

Revenue (2,000 + 1,500)

3,500

Cost of sales (1,200 + 1,000)

(2,200)

Gross profit

1,300

Distribution costs (400 + 120)

(520)

Administration expenses (240 + 250 + 30 (W1) + 20 (W2))

(540)

Share of profit of associate (W3)

13

Profit before tax

253

Income tax expense (50 + 40)

(90)

Profit for the year

163

Attributable to:

Equity holders of the parent

155

Non-controlling interest (W5)

8

W3 Share of profit of associate

                             $000

Profit after tax of EF

100

Pro-rata from date of acquisition - 9 months

75

Less unrealised profit on sales to AB (W4)

(10)

                                                                                               65

20% group share

13

W4 Unrealised profit on inventories

$000

Sales value of goods in inventories at year end (80 x ½ )

40

Unrealised profit at 25% margin

10

W5 Non-controlling interest

$000

Profit for the year for CD (as reported)

90

Additional depreciation on fair value uplift

(20)

Goodwill impairment

(30)

                                                                                                                       40

20% NCI share

                                             8