Why is profit not distributed from a consolidated statement of profit?
The main problems with preparing a consolidated statement of comprehensive income relate to reporting profit or loss for the period. A consolidated statement of comprehensive income brings together the income and expenses of the parent and its subsidiaries. All items of income and expense in the consolidated statement of comprehensive income are straight cross cast of equivalent items in the individual financial statements of the members of the group, subject to intra-group transaction adjustments. Bifurcation of Consolidated Profit or loss Consolidated financial statements must also disclose the profit or loss for the period and the total comprehensive income for the period attributable to: owners of the parent company; and non-controlling interests. The figure for NCI is simply their share of the subsidiarys profit for the year that has been included in the consolidated statement of comprehensive income. The amounts attributable to the owners of the parent and the non-controlling interest are shown as a metric (small table) immediately below the statement of comprehensive income. Illustration: Total comprehensive income attributable to: Owners of the parent (bala/figure) $ X Non-controlling interests (x% of y) $ X Where: x% is the NCI ownership interest y is the subsidiarys profit for the year that has been included in the consolidated statement of comprehensive income