企业合并4高财部分-根据-ifrs3--Consolidated-income-Statement课件.pptxVIP

Consolidated Income Statement Session 4 1 1. Principles of the consolidated income statement 2. Sales, purchases and inventories 3. Mid-year acquisition Consolidated Income Statement 2 1. Principles of the consolidated income statement Basic principle: The consolidated income statement shows the profit generated by all resources disclosed in the related consolidated statement of financial position, i.e. the net assets of the parent company (P) and its subsidiaries (Ss). l From revenue to profit after tax include all of P’s income and expenses plus all of S’s income and expenses (reflecting control of S) l After profit after tax deduct share of profits due to the non-controlling interest (to reflect ownership) 3 As with the statement of financial position, it is common to use standard workings when producing a consolidated income statement: l Consolidation schedule l Group structure diagram l Net assets of subsidiary at acquisition (required for goodwill calculation) l Goodwill calculation (required where an impairment is to be charged to profit) l Non-controlling interest Mechanics of consolidation 4 This schedule is used as a tool to add together P’s and S’s income and expenses and make any necessary. It includes: l 100% of P’s income and expenses l 100% of S’s income and expenses (unless a mid-year acquisition has occurred in which case this is time apportioned) Consolidation schedule 5 P S Adj Total Time apportioned if mid-year Revenue x x (x) X Cost of sales (x) (x) x (x) Operating expenses (x) (x) (x) (x) Finance cost (x) (x) (x) Income tax (x) (x) (x) Profit after tax X X X Cont. 6 Once any impairment has been identified during the year, the charge for the year will be passed through operating expenses, however always follow instructions from the examiner. Total impairment to date is an adjustment in retained earnings in the consolidated statement