E Co acquires 60% of the issued share capital of S Co midway through its accounting...
E Co acquires 60% of the issued share capital of S Co midway
through its accounting year on 30 April 20X2.
In their separate statements of profit or loss, the profits before
tax of the two companies for the year ended 31 December 20X2
are:
| E Co | $350,000 |
| S Co | $600,000 |
What profit before tax is reported in the consolidated statement of profit or loss for the year ended 31 December 20X2, in accordance with IFRS3 Business Combinations?
$950,000
$590,000
$710,000
$750,000
Homework Answers
In the consolidated financial statement the profit to be recorded are as udner:-
E Co. Profit : 3,50,000
S Co. Profit: 2,40,000*
Total 5,90,000
* (600,000*60%*8/12) = 2,40,000
Add Answer to:
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