Abrish Limited acquired 80% of Shazim Limited on 1 July 2012. In the post-acquisition period Abrish
Limited sold goods to Shazim Limited at a price of Rs. 12 million. These goods had cost Abrish
Limited Rs. 9 million. During the year to 31 March 2013 Shazim Limited had sold Rs. 10 million (at
cost to Shazim Limited) of these goods for Rs. 15 million.
How will this affect group cost of sales in the consolidated statement of comprehensive income of
Abrish Limited for the year ended 31 March 2013?

On 1 July 2017, Hareem Limited acquired 60% of the equity share capital of Maneha Limited and
on that date made a Rs. 10 million loans to Maneha Limited at a rate of 8% per annum.
What will be the effect on group retained earnings at the year-end date of 31 December 2017 when
this intragroup transaction is cancelled?

Maaz Limited acquired 80% of Hamza Limited on 1 January 2018. At the date of acquisition Hamza
Limited had a building that had a fair value Rs. 22 million and a carrying amount of Rs. 20 million.
The remaining useful life was 20 years. At the year-end date of 30 June 2018, the fair value of the
the building was Rs. 23 million.
Hamza Limited’s profit for the year to 30 June 2018 was Rs. 1.6 million which accrued evenly
throughout the year.
Maaz Limited measures non-controlling interest at fair value. On 30 June 2018, it estimated that
goodwill in Hamza Limited was impaired by Rs. 500,000.
What is the total comprehensive income attributable to the non-controlling interest on 30 June 2018?

Asim Limited acquires 80% of the share capital of Arif Limited on 1 August 2016 and is preparing
its group financial statements for the year ended 31 December 2016.
How will Arif Limited’s results be included in the group statement of comprehensive income?

Which of the following would result in an unrealised profit within a group scenario?

Jerry Limited acquired an 80% holding in Tom Limited on 1 April 2016. From 1 April 2016 to 31
December 2016 Tom Limited sold goods to Jerry Limited for Rs. 4.3m at a mark-up of 10%. Jerry
Limited’s inventory on 31 December 2016 included Rs. 2.2m of such inventory. The statements of
comprehensive income for each entity for the year to 31 December 2016 showed the following in
respect of the cost of sales:
Jerry Limited Rs. 14.7m
Tom Limited Rs. 11.6m
What is the cost of sales figure to be shown in the consolidated statement of comprehensive income
for the year to 31 December 2016?

Sun Limited acquired a 60% holding in Moon Limited on 1 January 2016. At this date Moon Limited
owned a building with a fair value Rs. 200 million in excess of its carrying amount, and a remaining
life of 10 years.
All depreciation is charged to operating expenses. Goodwill had been impaired by Rs. 55 million in
the year to 31 December 2016. The balances on operating expenses for the year to 31 December
2017 are shown below:
Sun Limited Rs. 600 million
Moon Limited Rs. 350 million

What are consolidated operating expenses for the year to 31 December 2017?

A Limited acquired a 60% holding in B Limited on 1 July 2016. At this date, A Limited gave B Limited
a Rs. 500 million 8% loan. The interest on the loan has been accounted for correctly in the individual
financial statements.
The totals for finance costs for the year to 31 December 2016 in the individual financial statements
are shown below.
A Limited Rs. 200 million
B Limited Rs. 70 million
What are consolidated finance costs for the year to 31 December 2016?

Abeeha Limited has owned 80% of Seema Limited for many years. In the current year ended 30
June 2013, Abeeha Limited has reported total revenues of Rs. 5.5 million, and Seema Limited of
Rs. 2.1 million. Abeeha Limited has sold goods to Seema Limited during the year with a total value
of Rs. 1 million, earning a margin of 20%. Half of these goods remain in year-end inventories.
What is the consolidated revenue figure for the Abeeha group for the year ended 30 June 2013?

On 1 January 2014, Venice Limited acquired 80% of the equity share capital of Greece Limited.
Extracts of their statements of comprehensive income for the year ended 30 September 2014 are:
Venice
Limited
Greece
Limited
Rs. 000 Rs. 000
Revenue 64,600 38,000
Cost of sales (51,200) (26,000)

Sales from Venice Limited to Greece Limited throughout the year to 30 September 2014 had
consistently been Rs. 800,000 per month. Venice Limited made a mark-up on the cost of 25% on these
sales.
Greece Limited had Rs. 1.5 million of these goods in inventory as of 30 September 2014.
What would be the cost of sales in Venice Limited’s consolidated statement of comprehensive
income for the year ended 30 September 2014?

Haris Limited has owned a 90% subsidiary Faris Limited for many years, but then purchased a 75%
subsidiary Suria Limited halfway through this year. The revenue for each company is as follows:
Haris Limited Rs. 150 million
Faris Limited Rs. 135 million
Suria Limited Rs. 120 million
During the year, Faris Limited sold goods to Haris Limited for Rs. 30 million. These items were then
sold outside of the group by Haris Limited just before the end of the year.
What is the consolidated revenue figure for the year?

Halim Limited owns 55% of Namal Limited. In 2018 Namal Limited made a profit after tax of Rs. 72
million. During the year Halim Limited sold goods costing Rs. 36 million to Namal Limited at a markup
of 40%. Two-thirds of these goods had been sold outside of the group by the year-end.
Calculate the non-controlling interest to be shown in the consolidated statement of comprehensive
income for 2018.

Two years ago, Burhan Limited purchased 60% of Hussain Limited and 10% of Meerab Limited.
Burhan Limited is not able to exert significant influence over its investment in Meerab Limited.
Revenue for the three companies for the year to 30th June 2010 was:
Burhan Limited
Rs. million
Hussain Limited
Rs. million
Meerab Limited
Rs. million
Revenue 180 144 108
The group revenue in the consolidated statement of comprehensive income is:

Hareem Limited and its subsidiary Maneha Limited have the following results for the year 2014.
Hareem Limited                    Maneha Limited

Rs. million                              Rs. million

Revenue                            900                                           450
Cost of sales                     450                                            234
Gross profits                    450                                            216
During the year, Hareem Limited sold goods to Maneha Limited for Rs. 90 million making a profit of
Rs. 18 million.
None of these goods remains in inventories at the year-end.
What will be shown as revenue and gross profit in the 2014 consolidated Statement of
comprehensive income?

Bilal Limited sells inventory costing Rs. 30 million to his subsidiary Sohail Limited for Rs. 45 million.
By the end of the year, Sohail Limited has just half of this inventory remaining.
If the sales of the two companies were: Rs. 150 million and Rs. 120 million respectively and the
cost of sales were Rs. 75 million and Rs. 60 million calculate the consolidated revenue and gross
profit for the year.

Abrar Limited acquired 60% of Haq Limited on 1 March 2019. In September 2019 Abrar Limited
sold Rs. 46 million worth of goods to Haq Limited. Abrar Limited applies a 30% mark-up to all its
sales. 25% of these goods were still held in inventory by Haq Limited at the end of the year.
An extract from the draft statements of profit or loss of Abrar Limited and Haq Limited at 31
December 2019 is:
Abrar Limited Haq Limited
Rs. million Rs. million
Revenue 955 421.5
Cost of sales (407.3) (214.6)
Gross profit 547.7 206.9
All revenue and costs arise evenly throughout the year.
What will be shown as gross profit in the consolidated statement of comprehensive income of Abrar
Limited for the year ended 31 December 2019?

Shahzad Limited acquired 80% of Roy Limited on 1 June 2011. Sales from Roy Limited to Shahzad
Limited throughout the year ended 30 September 2011 was consistently Rs. 1 million per month.
Roy Limited made a mark-up on the cost of 25% on these sales. On 30 September 2011 Shahzad
Limited was holding Rs. 2 million inventory that had been supplied by Roy Limited in the post-acquisition
period.
By how much will the unrealised profit decrease the profit attributable to the non-controlling interest
for the year ended 30 September 2011?

Akbar Limited has owned 70% of Hamayuon Limited for many years. It also holds an Rs. 5 million
8% loan note from Hamayuon Limited. One of Hamayuon Limited’s non-current assets has suffered
an impairment of Rs. 50,000 during the year. There is a balance in the revaluation surplus of
Hamayuon Limited of Rs. 30,000 in respect of this asset. The impairment loss has not yet been
recorded.
The entity financial statements of Hamayuon Limited show a profit for the year of Rs. 1.3 million.
What is the amount attributable to the non-controlling interests in the consolidated statement of
profit or loss?

The following figures relate to Bushra Limited and its subsidiary Ansari Limited for the year ended
31 December 2015.
During the year Bushra Limited sold goods to Ansari Limited for Rs. 20 million making a profit of
Rs.5 million. These goods were all sold by Ansari Limited before the year-end.
What is the amount for total revenue in the consolidated statement of comprehensive income for
Bushra Limited for the year ended 31 December 2015?

Fahad Limited Ltd acquired 80% of the ordinary shares of Mustufa Limited on 31 December 2014
when Mustufa Limited’s retained earnings were Rs. 20 million. On 31st December 2015, Mustufa
Limited’s retained earnings stood at Rs. 25 million. Neither companies pay dividends or have made
any other reserve transfers.
Calculate the non-controlling interest in the consolidated statement of comprehensive income for
the year ended 31st December 2015.