Tom and Harry

1 Group Share
Tom 90%
NCI 10%
100%
Purchased 1st August 2015
Subsdiary

2 Intergroup Sales
Cancel inter-group sales €'000 €'000
Dr Sales 600
Cr Purchases 600

3 Urealised Profit in closing inventory

Harry sells to Tom - unrealised profit in Harrys books (subsidiary)
€'000
Inventory 200
Profit 25% 50
€'000 €'000
Dr Consolidated Reseves 45
Dr NCI 5
Cr Inventory 50

4 Sales of Asset
Sales from Tom to Harry - unrealised profit in Tom books (parent)
€'000
Asset cost 01/07/14 400
Depreciation 2015 40
2016 40
NBV 31/07/16 320
Sales Proceeds 360
Unrealised Profit 40 arose in 2016
Tom and Harry

Unrealised profit in 2016 €'000 €'000

Dr Consolidated Reserves 40
Cr PPE 40

Depreciation overcharge remaining useful life 8 yrs - in Harrys books

€'000
Annual 5
2017- prior yer 5 overcharge
2018 - current year 5 overcharge

5 Goodwill Impairment €'000

Prior year - 2017 40
€'000 €'000
Dr Consolidated Reserves 36
Dr NCI 4
Cr Goodwill 40

Current Year - 2018 20

€ €
Dr Consolidated Reserves 18
Dr NCI 2
Cr Goodwill 20

6 Retained Earnings Tom

€'000
Reserves 31 July 2018 23,170
Less Profits for the year ended 31 July 2018 (2,940)
Reserves at 31 July 2017 20,230
Unrealised profit on sale of asset (40)
Depreciation overcharge on intercompany
sales of asset 2017
20,190
Tom and Harry

Harry
€'000
Reserves 31 July 2018 6,180
Less pre-acquisition reserves (3,800)
Post acquisition reserves 2,380
Less Profits for the year ended 31 July 2018 (1,470)
Reserves at 31 July 2017 910
Depreciation overcharge on intercompany
sales of asset 2017 5
Goodwill impairment 2017 (40)
Opening Reserves 875

Group share 90% 788

Tom and Harry

Tom Harry Adjust Consol

€'000 €'000 €'000 €'000
Revenue 67,140 49,800 (600) 116,340
Cost of sales 50,355 37,350 (600) 87,105
Unrealised profit in inventory 50 50
Gross profit 16,785 12,400 29,185 -
Distribution costs 4,650 3,780 8,430

Administrative expenses 7,755 6,270 14,025

Depreciation on intercompany sale of assest (5) (5)

Finance cost 705 570 1,275

Goodwill impairment 20 20
Profit/Loss before taxation 3,675 1,765 5,440
Income tax expenses 735 360 1,095
Profit/Loss after taxation 2,940 1,405 4,345

NCI (10%) 141 140.5

Profit Attributable to the Group 2,940 1,265 4,205
Retained profits b/f 20,190 788 20,978
23,130 2,052 25,182

24,907