CR – Nov 2023 – L3 – Q1 – Consolidated Financial Statements

Preparation of consolidated statement of profit or loss and other comprehensive income including adjustments for NCI, goodwill, and fair value.

Question

Below are the statements of comprehensive income of Agingo Plc (Agingo), Telemo Plc (Telemo), and Zimbo Plc (Zimbo) for the year ended 31 March 2023:

Item	Agingo (GH¢000)	Telemo (GH¢000)	Zimbo (GH¢000)
Revenue	432,840	302,988	259,704
Cost of sales	(194,778)	(136,345)	(116,867)
Gross profit	238,062	166,643	142,837
Operating expenses	(83,322)	(58,325)	(49,993)
Other income	10,821	7,575	6,493
Finance cost	(5,952)	(4,166)	(3,571)
Profit before tax	159,609	111,727	95,766
Tax	(39,902)	(29,927)	(27,134)
Profit for the year	119,707	81,800	68,632
Other comprehensive income	6,493	5,843	–
Total comprehensive income	126,200	87,643	68,632

Additional Information:

Agingo held 15% of the equity shares of Telemo and acquired an additional 45% and 10% of the loan stock during the year.
Fair value adjustments were made for the production machinery of Telemo, which had a useful life of 4 years.
Agingo acquired 70% of Zimbo in 2016.
Intercompany transactions occurred between Telemo and Agingo.
There were shareholding increases and impairments during the year.
Any intercompany dividends were excluded.

Required:
Prepare the consolidated statement of profit or loss and other comprehensive income of Agingo’s group for the year ended 31 March 2023. (All your workings are to be rounded to the nearest thousand).

Answer