On 1 January 20X0, Bliss plc acquired 80% of the ordinary share capital of Joy p...
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On 1 January 20X0, Bliss plc acquired 80% of the ordinary share capital of Joy plc, which became Bliss plc’s subsidiary. Both entities have a 31 December year end.
The separate income statements of the two entities for the financial year 20X2 are given below:
Income statement for the year ending 31 December 20X2
| ||
Amounts in £
|
Bliss plc
|
Joy plc
|
Revenue
|
50,000
|
35,000
|
Operating expenses
|
(41,000)
|
(28,000)
|
Financial income (expense)
|
2,000
|
(3,000)
|
Profit before tax
|
11,000
|
4,000
|
Tax expense
|
(3,300)
|
(1,000)
|
Profit after tax
|
7,700
|
3,000
|
The following information is also available:
The
non-controlling interest arising on the acquisition of Joy plc was calculated
using the share of acquiree’s net assets method.
On 10
January 20X2, Bliss plc’s accountants determined that an impairment loss of £1,000
should be recognised in respect of Bliss plc's investment in Joy plc.
Bliss
plc recognises £1,600 of dividend income from Joy plc within ‘financial income (expense)’ in its income
statement.
What is the profit after tax attributable to Bliss plc’s shareholders reported in Bliss plc’s consolidated income statement for the year ending 31 December 20X2?
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