June 2007 Task 1.4

JayneHogan

Can anybody tell me why the profit for the period from continuing operations attributable to equity holders of the parent is £4,173 and not £5,042 (£3,886 + £1,156)?

I am so struggling with this topic.

jojo1966

Its because wraymand have only bought 75% of the other company, therefore when you consolidate, the only bit of blonks profit attributable to the owners is 75% of their profit which = 867. add this onto wraymands profit of 3886 gives you consolidated profit of 4753, but there is also a dividend paid to wraymand from blonk and this has to be eliminated from the calculation, therefore final profit to owners = 4753 - 580 dividend = 4173 final profit attributable to owners

JayneHogan

brilliant! Thank you. I finally understand this topic at the eleventh hour. I have a new job tomorrow and need to revise bank reconciliations from foundation but all I want to do is spend the next two days revising for DFS.