Double Exit

This is the second article on approaching consolidation questions which will focus on preparing the consolidated statement of profit and loss and other comprehensive income (CSPLOCI). The first article in this series focused on preparing the consolidated statement of financial position (CSOFP) with a particular emphasis on the two main methods to approaching the question – T account and columnar. With the CSOFP prepared, the next step in preparing consolidated financial statements is the CSPLOCI. Note that regardless of the approach used in preparing the CSOFP, you will likely prepare the CSPLOCI the same way as the differences in approaches really only apply to the preparation of the CSOFP.

The CSPLOCI can often be neglected by many students as they put their focus on mastering the CSOFP and its associated adjustments. However, in many questions the CSPLOCI can represent a significant portion of marks and should not be ignored.

 

Materials

The core article is available here (Approaching Consolidation Questions – CSPLOCI)

Example Question (CAP2 FR S’13 Q2 – Able Plc – available on CAI website using log in)

Example Solution + Suggested Steps (CAP2 FR S’13 Q2)

 

 

Articles

The three articles in this series are;