AAT FINANCIAL STATEMENTS - Sample Assessment 2

Hi, can anyone help on task 1.6?

I cant figure out the total for cost of sales - where is 280 from?

Comments

  • Zoynal98Zoynal98 AATQB Posts: 59
    Hi,

    Please see below workings.

    Consolidated Revenue:

    Danes Plc: £18,560
    Winter Ltd: £9,350
    Total Inter-company adj: -£350 (Simply get rid of the revenue made by Danes Plc)
    Total Revenue: £27,560

    Consolidated Cost of Sales:

    Danes Plc: £12,346
    Winter Ltd: £5,256
    Total Inter-company adj: -£280 (£350 - £210 = £140 (Total Profit), Unrealised Profit = £140/2 = £70, take this away from the Buying price of Winter Ltd which is £350 giving you £350 - £70 = £280)
    Total Cost of Sales: £17,322

    Consolidated Other Income:

    Danes Plc: £3,258
    Winter Ltd: £1,158
    Total Inter-company adj: -£320 (Dividends go into Retained Earnings not on the P&L)
    Total Other Income: £4,096

    Hope this helps.
    sabina
  • sabinasabina Registered Posts: 24
    Thank you! :)

    Do you know how the workings are done for equity holders of the parent and NCI?
  • Zoynal98Zoynal98 AATQB Posts: 59
    edited July 17
    No problem.

    I've answered the same question before, please follow link: https://forums.aat.org.uk/Forum/discussion/445175/financial-statements-paper-2-question-1-6b#latest
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