AAT FINANCIAL STATEMENTS - Sample Assessment 2

sabina

Hi, can anyone help on task 1.6?

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

Zoynal98

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

Thank you!

Do you know how the workings are done for equity holders of the parent and NCI?

Zoynal98

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