Consolidated statement of profit or loss and other comprehensive income - part 2
Taught by James Griffiths · AI tutor support included
You'll learn how to handle two critical consolidation adjustments in the group statement of profit or loss: goodwill impairment and intra-group transactions.
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In this lesson
- 0:00 Impairment and intra group trading explained
- 1:24 Cancelling intra group income and expenses
- 2:34 Fair value adjustments and depreciation impact
- 4:18 Time apportioning subsidiary results in group accounts
About this lesson
This video covers why goodwill impairment is recognised as an expense (typically added to admin expenses), how to eliminate intra-group income and expenses based on the single entity concept, and the essential principle of time apportioning subsidiary results when acquisitions occur mid-year. You'll also discover why fair value adjustments have no initial profit and loss impact, but may create additional depreciation expenses post-acquisition. These techniques are fundamental to SBR and FR papers and essential for producing accurate consolidated financial statements.
Duration: 6m
Transcript
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