Memo, a public limited company, owns 75% of the ordinary share capital of Random, a public limited company which is situated in a foreign country. Memo acquired Random on 1 May 2003 for 120 million crowns (CR) when the retained profits of Random were 80 million crowns. Random has not revalued its assets or issued any share capital since its acquisition by Memo. The following financial statements relate to Memo and Random:
The following information is relevant to the preparation of the consolidated financial statements of Memo:
Statement of financial positions at 30 April 2004

Statement of comprehensive incomes for year ended 30 April 2004

The following information is relevant to the preparation of the consolidated financial statements of Memo:
(a) The directors wish to treat goodwill in accordance with recent proposals as a foreign currency asset. Goodwill has been subjected to an impairment review as at 30 April 2004 and is deemed to be impaired by $2 million.
(b) During the financial year Random has purchased raw materials from Memo and denominated the purchase in crowns in its financial records. The details of the transaction are set out below:

At the year-end, half of the raw materials purchased were still in the inventory of Random. The inter-company transactions have not been eliminated from the financial statements and the goods were recorded by Random at the exchange rate ruling on 1 February 2004. A payment of $6 million was made to Memo when the exchange rate was 2.2 Crowns to $1. Any exchange gain or loss arising on the transaction is still held in the current liabilities of Random.
(c) Memo had made an interest free loan to Random of $5 million on 1 May 2003. The loan was repaid on 30 May 2004. Random had included the loan in non-current liabilities and had recorded it at the exchange rate at 1 May 2003.
(d) The fair value of the net assets of Random at the date of acquisition is to be assumed to be the same as the carrying value.
(e) Random operates with a significant degree of autonomy in its business operations.
(f) The following exchange rates are relevant to the financial statements:
Crown
to $
30 April/1 May 2003 ................................. 2.5
1 November 2003 ..................................... 2.6
1 February 2004 ....................................... 2
30 April 2004 .......................................... 2.1
Average rate for year to
30 April 2004 .......................................... 2
(g) Memo has paid a dividend of $8 million during the financial year and this is not included in the statement of comprehensive income.
Required:
Prepare a consolidated statement of comprehensive income for the year ended 30 April 2004 and a consolidated statement of financial position at that date in accordance with International Financial Reporting Standards.
(b) (Round calculations to the nearest $100 000.)

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5m 297 48 Random CFim 146 Tangible non-current assets Investment in Random Loan to Random Current assets 355 705 102 248 Capital and reserves Ordinary shares of $1/HCR Share premium account Accumulated profit 60 360 470 30 205 705 32 20 95 147 41 60 248 Non current liabilities Current liabilities andom CRm 142 Memo Revenue Cost of sales Gross prof Distribution and administrative 200 (120) 80 (30) 46 (20) expenses Operating profit Interest receivable Interest payable Profit before taxation Income tax expense Profit after taxation 50 54 20 34 24 15 Purchase Profit percentagee Date of transaction price Sm 1February 2004 on selling price Raw materials 6 20%