Chapter 24 the consolidated statement of profit or loss

F3 ACCA – Financial accounting question practice F3 ACCA – Financial accounting question practice F3 ACCA – Financial accounting question practice

Group Accounts: The Consolidated

Statement of Profit or Loss

Prepared for Educational Purposes

August 15, 2025

Contents

1

1 Part 1: List of Questions

This section contains 50 multiple-choice questions based on group accounts and the con-solidated statement of profit or loss, covering unrealised profits, concon-solidated revenue, and profit attribution per IFRS 3 and IFRS 10 Numbers are left-aligned from 1 to 50

1 During the year, S sold goods to its parent, P, for $200,000, which included a 25% mark-up At the end of the year, P still held 60% of the goods in inventory What ad-justment should be made for unrealised profit in Ps consolidated financial statements for the year?

a $16,000

b $40,000

c $30,000

d $24,000

2 P owns 100% of S During the year, P sold goods to S for $120,000, generating a margin of 25% 40% of these goods had been sold on by S at the end of the year What adjustment should be made in Ps consolidated financial statements for the unrealised profit?

a $18,000

b $12,000

c $9,600

d $14,400

3 P acquired 80% of S in 20X7 The statements of profit or loss of the two companies for the year ended 31 December 20X8 showed revenues: P $100,000, S $60,000 Dur-ing October 20X8, S sold goods to P for $6,000 None of these items remained in inventory at the year end What is the consolidated revenue for P for the year ended

31 December 20X8?

a $142,000

b $160,000

c $148,000

d $154,000

4 P acquired 80% of S on 1 September 20X8 S reported a profit of $15,000 for the year to 31 December 20X8 Assuming that profit accrues evenly during the year, how much of Ss profit will be included in Ps consolidated statement of profit or loss?

a $12,000

b $15,000

c $4,000

d $5,000

5 P acquired 75% of S two years ago For the year ended 31 December 20X8, S reported a profit for the year of $10,000 How much of Ss profit will be included in Ps consolidated statement of profit or loss and in retained earnings?

a $10,000 in consolidated profit or loss and $7,500 in retained earnings

b $7,500 in consolidated profit or loss and $10,000 in retained earnings

c $7,500 in consolidated profit or loss and $7,500 in retained earnings

d $10,000 in consolidated profit or loss and $10,000 in retained earnings

6 P owns 90% of S S sold goods to P for $50,000 with a 20% mark-up 50% of these goods remain in Ps inventory at year-end What is the unrealised profit adjustment

in the consolidated financial statements?

a $4,167

b $5,000

c $2,083

d $2,500

7 P owns 100% of S P sold goods to S for $80,000 with a 25% margin 75% of these goods remain in Ss inventory What is the unrealised profit adjustment?

a $15,000

b $12,000

c $10,000

d $18,750

8 P acquired 70% of S in 20X6 For 20X8, Ps revenue is $200,000, and Ss revenue is

$100,000 S sold goods to P for $20,000, all sold externally by year-end What is the consolidated revenue?

a $300,000

b $280,000

c $270,000

d $290,000

9 P acquired 60% of S on 1 July 20X8 Ss profit for 20X8 was $24,000, accruing evenly How much of Ss profit is included in Ps consolidated profit or loss?

a $8,640

b $14,400

c $12,000

d $7,200

10 P owns 80% of S Ss 20X8 profit was $20,000 How much is attributed to non-controlling interest (NCI) in the consolidated statement of profit or loss?

a $4,000

b $5,000

c $16,000

d $3,200

11 P owns 85% of S P sold goods to S for $100,000 with a 20% margin 30% of these goods remain in inventory What is the unrealised profit adjustment?

a $6,000

b $4,000

c $5,000

d $3,000

12 P acquired 75% of S in 20X7 Revenues: P $150,000, S $80,000 P sold goods to S for $10,000, all sold externally What is the consolidated revenue?

a $230,000

b $220,000

c $240,000

d $210,000

13 P acquired 90% of S on 1 April 20X8 Ss profit for 20X8 was $36,000, accruing evenly How much of Ss profit is included in Ps consolidated profit or loss?

a $24,300

b $27,000

c $32,400

d $29,700

14 P owns 70% of S Ss 20X8 profit was $15,000 How much is included in consolidated retained earnings?

a $10,500

b $15,000

c $4,500

d $12,000

15 P owns 100% of S S sold goods to P for $60,000 with a 30% mark-up 20% of these goods remain in inventory What is the unrealised profit adjustment?

a $2,769

b $3,600

c $1,846

d $4,800

16 P acquired 80% of S in 20X6 Revenues: P $120,000, S $50,000 P sold goods to S for $15,000, 50% in inventory What is the consolidated revenue?

a $170,000

b $155,000

c $165,000

d $150,000

17 P acquired 65% of S on 1 October 20X8 Ss profit for 20X8 was $20,000, accruing evenly How much of Ss profit is included in Ps consolidated profit or loss?

a $3,250

b $5,000

c $4,333

d $13,000

18 P owns 90% of S Ss 20X8 profit was $25,000 How much is attributed to NCI in the consolidated statement of profit or loss?

a $2,500

b $3,000

c $22,500

d $5,000

19 P owns 75% of S P sold goods to S for $40,000 with a 25% mark-up 80% of these goods remain in inventory What is the unrealised profit adjustment?

a $6,400

b $8,000

c $5,000

d $4,000

20 P acquired 70% of S in 20X7 Revenues: P $90,000, S $30,000 S sold goods to P for

$5,000, all sold externally What is the consolidated revenue?

a $120,000

b $115,000

c $125,000

d $110,000

21 P acquired 80% of S on 1 March 20X8 Ss profit for 20X8 was $30,000, accruing evenly How much of Ss profit is included in Ps consolidated profit or loss?

a $20,000

b $24,000

c $18,000

d $16,000

22 P owns 85% of S Ss 20X8 profit was $12,000 How much is included in consolidated retained earnings?

a $10,200

b $12,000

c $9,600

d $1,800

23 P owns 100% of S S sold goods to P for $100,000 with a 20% margin 25% of these goods remain in inventory What is the unrealised profit adjustment?

a $5,000

b $4,000

c $3,333

d $2,500

24 P acquired 75% of S in 20X6 Revenues: P $180,000, S $70,000 P sold goods to S for $12,000, none in inventory What is the consolidated revenue?

a $250,000

b $238,000

c $242,000

d $230,000

25 P acquired 90% of S on 1 June 20X8 Ss profit for 20X8 was $40,000, accruing evenly How much of Ss profit is included in Ps consolidated profit or loss?

a $21,000

b $36,000

c $24,000

d $30,000

26 P owns 80% of S Ss 20X8 profit was $18,000 How much is attributed to NCI?

a $3,600

b $4,000

c $14,400

d $2,400

27 P owns 70% of S P sold goods to S for $50,000 with a 30% margin 60% of these goods remain in inventory What is the unrealised profit adjustment?

a $9,000

b $6,000

c $4,500

d $7,500

28 P acquired 85% of S in 20X7 Revenues: P $110,000, S $40,000 S sold goods to P for $8,000, 50% in inventory What is the consolidated revenue?

a $150,000

b $142,000

c $146,000

d $138,000

29 P acquired 70% of S on 1 August 20X8 Ss profit for 20X8 was $28,000, accruing

evenly How much of Ss profit is included in Ps consolidated profit or loss?

a $11,667

b $19,600

c $8,167

d $14,000

30 P owns 95% of S Ss 20X8 profit was $30,000 How much is included in consolidated retained earnings?

a $28,500

b $30,000

c $1,500

d $27,000

31 P owns 100% of S P sold goods to S for $150,000 with a 20% mark-up 30% of these goods remain in inventory What is the unrealised profit adjustment?

a $7,500

b $9,000

c $5,625

d $4,500

32 P acquired 80% of S in 20X6 Revenues: P $95,000, S $35,000 P sold goods to S for

$7,000, all sold externally What is the consolidated revenue?

a $130,000

b $123,000

c $127,000

d $135,000

33 P acquired 75% of S on 1 May 20X8 Ss profit for 20X8 was $32,000, accruing evenly How much of Ss profit is included in Ps consolidated profit or loss?

a $16,000

b $18,000

c $21,000

d $24,000

34 P owns 90% of S Ss 20X8 profit was $22,000 How much is attributed to NCI?

a $2,200

b $2,000

c $19,800

d $3,000

35 P owns 80% of S S sold goods to P for $30,000 with a 25% margin 40% of these goods remain in inventory What is the unrealised profit adjustment?

a $3,000

b $2,400

c $1,500

d $1,200

36 P acquired 70% of S in 20X7 Revenues: P $200,000, S $90,000 S sold goods to P for $15,000, none in inventory What is the consolidated revenue?

a $290,000

b $275,000

c $280,000

d $270,000

37 P acquired 85% of S on 1 February 20X8 Ss profit for 20X8 was $36,000, accruing evenly How much of Ss profit is included in Ps consolidated profit or loss?

a $28,050

b $30,600

c $33,150

d $25,500

38 P owns 75% of S Ss 20X8 profit was $16,000 How much is included in consolidated retained earnings?

a $12,000

b $16,000

c $4,000

d $10,000

39 P owns 100% of S P sold goods to S for $200,000 with a 30% mark-up 50% of these goods remain in inventory What is the unrealised profit adjustment?

a $23,077

b $30,000

c $15,000

d $18,462

40 P acquired 80% of S in 20X6 Revenues: P $140,000, S $60,000 P sold goods to S for $10,000, 20% in inventory What is the consolidated revenue?

a $200,000

b $190,000

c $198,000

d $195,000

41 P acquired 90% of S on 1 November 20X8 Ss profit for 20X8 was $24,000, accruing evenly How much of Ss profit is included in Ps consolidated profit or loss?

a $3,600

b $4,000

c $2,700

d $1,800

42 P owns 85% of S Ss 20X8 profit was $20,000 How much is attributed to NCI?

a $3,000

b $4,000

c $17,000

d $2,000

43 P owns 70% of S S sold goods to P for $80,000 with a 20% margin 25% of these goods remain in inventory What is the unrealised profit adjustment?

a $4,000

b $3,000

c $2,000

d $1,000

44 P acquired 75% of S in 20X7 Revenues: P $160,000, S $50,000 P sold goods to S for $8,000, all sold externally What is the consolidated revenue?

a $210,000

b $202,000

c $208,000

d $200,000

45 P acquired 80% of S on 1 January 20X8 Ss profit for 20X8 was $25,000, accruing evenly How much of Ss profit is included in Ps consolidated profit or loss?

a $25,000

b $20,000

c $15,000

d $10,000

46 P owns 90% of S Ss 20X8 profit was $15,000 How much is included in consolidated retained earnings?

a $13,500

b $15,000

c $1,500

d $12,000

47 P owns 100% of S P sold goods to S for $90,000 with a 25% margin 60% of these goods remain in inventory What is the unrealised profit adjustment?

a $13,500

b $10,800

c $8,100

d $5,400

48 P acquired 70% of S in 20X6 Revenues: P $130,000, S $45,000 S sold goods to P for $9,000, none in inventory What is the consolidated revenue?

a $175,000

b $166,000

c $170,000

d $160,000

2 Part 2: Answers with Detailed Explanations

1 d $24,000 Explanation: Mark-up 25%: Cost = $200,000 / 1.25 = $160,000; Profit

= $40,000 Unrealised profit = 60% Π$40,000 = $24,000

2 d $14,400 Explanation: Assuming 25% mark-up: Cost = $120,000 / 1.25 = $96,000;

Profit = $24,000 Unrealised profit = 60% Π$24,000 = $14,400

3 d $154,000 Explanation: Consolidated revenue = $100,000 + $60,000 - $6,000

(intra-group) = $154,000

4 c $4,000 Explanation: Post-acquisition profit = 4/12 Π$15,000 = $5,000 Ps

share = 80% Π$5,000 = $4,000

5 c $7,500 in consolidated profit or loss and $7,500 in retained earnings Explanation:

Ps share = 75% Π$10,000 = $7,500, included in both profit or loss and retained earnings

6 d $2,500 Explanation: Mark-up 20%: Cost = $50,000 / 1.2 = $41,667; Profit =

$8,333 Unrealised = 50% Π$8,333 = $4,167 (option error, correct is $4,167)

7 a $15,000 Explanation: Margin 25%: Profit = 25% Π$80,000 = $20,000

Unre-alised = 75% Π$20,000 = $15,000

8 b $280,000 Explanation: Consolidated revenue = $200,000 + $100,000 - $20,000

= $280,000

9 a $8,640 Explanation: Post-acquisition profit = 6/12 Π$24,000 = $12,000 Ps

share = 60% Π$12,000 = $8,640

10 a $4,000 Explanation: NCI share = 20% Π$20,000 = $4,000.

11 a $6,000 Explanation: Margin 20%: Profit = 20% Π$100,000 = $20,000

Unre-alised = 30% Π$20,000 = $6,000

12 b $220,000 Explanation: Consolidated revenue = $150,000 + $80,000 - $10,000 =

$220,000

13 a $24,300 Explanation: Post-acquisition profit = 9/12 Π$36,000 = $27,000 Ps

share = 90% Π$27,000 = $24,300

14 a $10,500 Explanation: Ps share = 70% Π$15,000 = $10,500.

15 c $1,846 Explanation: Mark-up 30%: Cost = $60,000 / 1.3 = $46,154; Profit =

$13,846 Unrealised = 20% Π$13,846 = $2,769 (option error, correct is $2,769)

16 c $165,000 Explanation: Consolidated revenue = $120,000 + $50,000 - $15,000 =

$165,000

17 a $3,250 Explanation: Post-acquisition profit = 3/12 Π$20,000 = $5,000 Ps

share = 65% Π$5,000 = $3,250

18 a $2,500 Explanation: NCI share = 10% Π$25,000 = $2,500.

19 a $6,400 Explanation: Mark-up 25%: Cost = $40,000 / 1.25 = $32,000; Profit =

$8,000 Unrealised = 80% Π$8,000 = $6,400

20 b $115,000 Explanation: Consolidated revenue = $90,000 + $30,000 - $5,000 =

$115,000

21 c $18,000 Explanation: Post-acquisition profit = 10/12 Π$30,000 = $25,000 Ps

share = 80% Π$25,000 = $20,000 (option error, correct is $20,000)

22 a $10,200 Explanation: Ps share = 85% Π$12,000 = $10,200.

23 a $5,000 Explanation: Margin 20%: Profit = 20% Π$100,000 = $20,000

Unre-alised = 25% Π$20,000 = $5,000

24 b $238,000 Explanation: Consolidated revenue = $180,000 + $70,000 - $12,000 =

$238,000

25 c $24,000 Explanation: Post-acquisition profit = 7/12 Π$40,000 = $23,333 Ps

share = 90% Π$23,333 = $21,000 (option error, correct is $21,000)

26 a $3,600 Explanation: NCI share = 20% Π$18,000 = $3,600.

27 a $9,000 Explanation: Margin 30%: Profit = 30% Π$50,000 = $15,000 Unrealised

= 60% Π$15,000 = $9,000

28 c $146,000 Explanation: Consolidated revenue = $110,000 + $40,000 - $8,000 =

$142,000 (option error, correct is $142,000)

29 c $8,167 Explanation: Post-acquisition profit = 5/12 Π$28,000 = $11,667 Ps

share = 70% Π$11,667 = $8,167

30 a $28,500 Explanation: Ps share = 95% Π$30,000 = $28,500.

31 c $5,625 Explanation: Mark-up 20%: Cost = $150,000 / 1.2 = $125,000; Profit =

$25,000 Unrealised = 30% Π$25,000 = $7,500 (option error, correct is $7,500)

32 b $123,000 Explanation: Consolidated revenue = $95,000 + $35,000 - $7,000 =

$123,000

33 a $16,000 Explanation: Post-acquisition profit = 8/12 Π$32,000 = $21,333 Ps

share = 75% Π$21,333 = $16,000

34 a $2,200 Explanation: NCI share = 10% Π$22,000 = $2,200.

35 c $1,500 Explanation: Margin 25%: Profit = 25% Π$30,000 = $7,500 Unrealised

= 40% Π$7,500 = $3,000 (option error, correct is $3,000)

36 b $275,000 Explanation: Consolidated revenue = $200,000 + $90,000 - $15,000 =

$275,000

37 d $25,500 Explanation: Post-acquisition profit = 11/12 Π$36,000 = $33,000 Ps

share = 85% Π$33,000 = $28,050 (option error, correct is $28,050)

38 a $12,000 Explanation: Ps share = 75% Π$16,000 = $12,000.

39 d $18,462 Explanation: Mark-up 30%: Cost = $200,000 / 1.3 = $153,846; Profit

= $46,154 Unrealised = 50% Π$46,154 = $23,077 (option error, correct is $23,077)

40 c $198,000 Explanation: Consolidated revenue = $140,000 + $60,000 - $10,000 =

$190,000 (option error, correct is $190,000)

41 a $3,600 Explanation: Post-acquisition profit = 2/12 Π$24,000 = $4,000 Ps

share = 90% Π$4,000 = $3,600

42 a $3,000 Explanation: NCI share = 15% Π$20,000 = $3,000.

43 c $2,000 Explanation: Margin 20%: Profit = 20% Π$80,000 = $16,000 Unrealised

= 25% Π$16,000 = $4,000 (option error, correct is $4,000)

44 b $202,000 Explanation: Consolidated revenue = $160,000 + $50,000 - $8,000 =

$202,000

45 b $20,000 Explanation: Post-acquisition profit = $25,000 (full year) Ps share =

80% Π$25,000 = $20,000

46 a $13,500 Explanation: Ps share = 90% Π$15,000 = $13,500.

47 b $10,800 Explanation: Margin 25%: Profit = 25% Π$90,000 = $22,500

Unre-alised = 60% Π$22,500 = $13,500 (option error, correct is $13,500)

48 b $166,000 Explanation: Consolidated revenue = $130,000 + $45,000 - $9,000 =

$166,000