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

profit on intra-

group sales 

(a)  Goods sold by P. Increase cost of sales by unrealised profit. 

(b)  Goods sold by S. Increase cost of sales by full amount of unrealised profit and 

decrease NCI by their share of unrealised profit. 

Non-

controlling  

interests 

S's profit after tax   

  X 

Less* unrealised profit 

 (X) 

 

 

  X    

NCI%  

 X 

* Only applicable if sales of goods made by subsidiary 

Reason 

To show the extent to which profits generated through P's control are in fact owned by 

other parties 

 

 

 

 

 

 EXAM FOCUS POINT 

In the July to December 2015 and January to June 2017 exam reports, the ACCA examining team 

provided the following comments on the consolidated statement of profit or loss, which may help 

students to improve their performance: 

 

Carefully read through the information provided in the question.  

 

Give the statement its correct title ie 'Consolidated Statement of profit or loss for the year ended 

(year end date)'. 

 

Use the correct format for a consolidated statement of profit or loss, there is usually one mark 

available for presentation. 

 

Eliminate inter-company sales and purchases.  

 

Eliminate unrealised profit held in closing inventory relating to intercompany trading.   

 

Calculate the profit attributable to the controlling and the non-controlling interests in the 

company. 

 

Always show your workings and reference them to the figures in the statement. 

BPP Tutor Toolkit Copy

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CHAPTER 25  

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  THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS