Question 2 (20minutes): On 1 October 20X1, Nero Co acquired 80% of the voting shares...
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Question 2 (20minutes): On 1 October 20X1, Nero Co acquired 80% of the voting shares of Caligula Co. The following extracts are from the individual statements of profit or loss of the two companies for the year ended 30 September 20X2 (= end of Nero's and Caligula's fiscal year end): All amounts in Nero Co. Caligula Co. Revenue 80,000 30,000 Cost of goods sold -56,000 -19,000 Gross profit 24,000 11,000 Reflected in the numbers above is the following: During the fiscal year Nero Co sold goods to Caligula Co for 5,000. Nero Co had originally purchased these goods at a cost of 4,000. Half of these goods remained in the inventory of Caligula Co at the year end, the other half was sold to external customers during the fiscal year. (a) What should be Nero group's IFRS consolidated revenue for the year ended 30 September 20x2? (10 minutes) (b) What should be Nero group's IFRS consolidated gross profit for the year ended 30 September 20x2? (10 minutes)
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