Extracts from the group's consolidated statement of profit or loss for the year ended 30 September 2020 are set out belo

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Extracts From The Group S Consolidated Statement Of Profit Or Loss For The Year Ended 30 September 2020 Are Set Out Belo 1 (20.44 KiB) Viewed 56 times

Extracts From The Group S Consolidated Statement Of Profit Or Loss For The Year Ended 30 September 2020 Are Set Out Belo 2 (29.7 KiB) Viewed 56 times

Extracts from the group's consolidated statement of profit or loss for the year ended 30 September 2020 are set out below. Consolidated statement of profit or loss for the year ended 30 September 2020 (extract) $ Profit from operations 380,000 Share of profits from an entity 27,000 Profit before tax 407,000 Income tax expense (100,000) Profit for the year 307,000 Attributable to: Owners of the parent Non-controlling interest 245,600 61,400 307,000

The board of directors is unclear about the $27,000 share of profits in the consolidated statement of profit or loss for the year ended 30 September 2020. They would like to determine whether the amount arose from a subsidiary, an associate, a joint venture, or a joint operation. Requirements: 1 In the context of Business combinations, Investment in associates and Joint arrangement, briefly explain the different accounting treatments among a subsidiary, an associate, a joint venture and a joint operation in the consolidated financial statement. (15 marks) 2 If you are an accountant, which two forms of an entity among a subsidiary, an associate, a joint venture and a joint operation should be excluded when you provide advice to the board of directors based on the above extract of the consolidated statement of profit or loss? (5 marks)