I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART G: PREPARING SIMPLE CONSOLIDATED FINANCIAL STATEMENTS 

 

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   Summary: consolidated statement of profit or loss 

The table below summarises the main points about the consolidated statement of profit or loss. 

Purpose 

To show the results of the group for an accounting period as if it were a single entity 

Sales revenue 

to profit for 

year 

100% parent (P) + 100% subsidiary (S) (excluding adjustments for intra-group 

transactions) 

Reason 

To show the results of the group which were controlled by the parent company 

Intra-group 

sales 

Strip out intra-group activity from both sales revenue and cost of sales 

Unrealised