(a) (i)

consolidated statement of profit and loss and OCI for the …

Revenue 538
Cost of sale(312+65+18)-12 -383

(ii)
revesal of goodwill impairment
revesal of goodwill impairment is not allowed under IAS 38. The std only allows the recognition of purchased GW. T
Since Marhchant has recognized the reversal of G/W, they will need to write-off $5m to P&L.

(iii)
The sales of 8% interest in Nathan does not result in a loss of control, thus its just a transaction within equity. The s
Meanwhile the NCI would increase by 11.7m as a result of the 8% disposal
Gain / loss on decrease in interest (Nathan)
Proceeds 18
Less NA @ 30 April 2014
As given 120
FV adjustment 14
G/W remaining 12

% decrease 0.08 -11.7

Gain to equity 6.3

(iV) g/l on disposal option $'m

Proceeds 50
FV of residual int 40
NCI 34
124
Less NA at 1 Nov 2013
as given 90
g/w remaining 12
-102
Gain to P&L 22

The disposal of 40% interest would result in a loss of control, thus, the subsi will no longer to consolidated from 1 N
Therefore, the consolidated P&L will only include the first 6 mths result of option
Thereafter, Marchant will need to account for its remaining interest in Option as an investment in associate, thus th
In the consolidated SOFP, the investment in associate will be shown as $41.5m ($40+$1.5).
Besides that, a gain on disposal of Option $22m will be included within the consol P&L and any remaining GW for P
ecognition of purchased GW. Thus, recognising any reversal of G/W impairment, this amount to recognising inernally generated GW.

ansaction within equity. The sale of 8% interest will give rise to a gain of 6.3m and would be recognized in equity rather than P&L because

nger to consolidated from 1 Nov 2013 onwards.

nvestment in associate, thus the share of associate profit $1.5m (7.5m * 20%) will be included whthin the consol P&L.

L and any remaining GW for Potion will be written off as the subsi has been disposed.
inernally generated GW.

quity rather than P&L because its mere a transaction within equity