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 

 

454

 

1 

The individual statements of profit or loss are totalled and certain adjustments made. 

2 

An adjustment is made to reduce the sales and cost of sales figures by the value of intra-group sales 

during the year. Thus the consolidated figures for sales and cost of sales should represent sales to and 

purchases from outsiders. 

3 

D 

Revenue is reduced by the full amount of intra-group sales. 

4 

B 

Gross profit is reduced by the element of unrealised profit which is 10,000  25/125 = $2,000. 

5 

Intra-group sales and purchases are eliminated from the consolidated statement of profit or loss. 

 

 

 

 

 

 

 

 

Now try ... 

 

Attempt the questions below from the Practice Question Bank 

 

Qs 94 – 97  

 

 

 

 

 

 

 

 

 

ANSWERS TO QUICK QUIZ 

BPP Tutor Toolkit Copy

---

 

 

455 

 

 

Interpretation of financial

statements

part

BPP Tutor Toolkit Copy

---