4. Group P&L and SOCIE

Question 1

How is the group P&L calculated?

Answer 1

Add together the parent and subsidiaries P&Ls, with the exclusion of dividend income from subsidiaries and associates

Question 2

How is consolidated profit split between that attributable to the parent and that attributable to the NCI?

Answer 2

• Total profit = that from the consolidated P&L (only excl dividend income)
• Minus NCI (subsidiary profit x NCI %)
• Equals Parent total attributable profit

Question 3

What is the double entry to the consolidated P&L when there has been a sale between parent and subsidiary?

Answer 3

Dr Group Revenue

Cr Group Cost of Sales

Question 4

What is the double entry to the consolidated P&L when there has been a sale of goods at profit, and some of those goods are still in inventory at year end?

Answer 4

Dr Seller Cost of Sales

Cr Seller Inventories on SFP

Question 5

How is the group P&L consolidated when the acquisition was made Mid-year?

Answer 5

Only the revenue and expenses from the date of acquisition are included

Question 6

What are the three columns in the group SOCIE?

Answer 6

Owners of parent, NCI and total

Question 7

How do you calculate group profit for the year in the consolidated SOCIE?

Answer 7

Parent profit for the year, minus dividend paid by sub, plus share of subs profit