H plc owns 70% of the the voting shares of S plc. S plc is a subsidiary of H plc. The most recent income statements of each company include the following entries: H plc S plc £ £ Interest receivable 317,000 206,000 Finance charges 145,000 230,000 Two years' previously H plc made a loan of 765,000 to S plc which is repayable in full in 4 years' time. The loan bears interest at 6% a year. What figure will be reported in the Consolidated Income Statement of H plc for 'Finance charges'?

H plc owns 70% of the the voting shares of S plc. S plc is a subsidiary of H plc. The most recent income statements of each company include the following entries: H plc S plc £ £ Interest receivable 317,000 206,000 Finance charges 145,000 230,000 Two years' previously H plc made a loan of 765,000 to S plc which is repayable in full in 4 years' time. The loan bears interest at 6% a year. What figure will be reported in the Consolidated Income Statement of H plc for 'Finance charges'?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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