10.3 Giant plc bought a majority shareholding in Jack Ltd, on 31 March. On that date the statements of financial position of the two companies were as follows:

Statements of financial position as at 31 March Giant plc Jack Ltd

£m £m ASSETS Non-current assets Property, plant and equipment Land 27 12 Plant 55 8 Vehicles 18 7 100 27 Investment 10 million shares of Jack Ltd 30 –

130 27 Current assets Inventories 33 13 Trade receivables 42 17 Cash 22 5 97 35 Total assets 227 62 EQUITY AND LIABILITIES Equity Called-up share capital: ordinary shares of £1 each, fully paid 50 10 Share premium account 40 5 Revaluation reserve – 8 Retained earnings 46 7 136 30 Non-current liabilities Borrowings – loan notes 50 13 Current liabilities Trade payables 41 19 Total equity and liabilities 227 62 Required:

Assume that the statement of financial position values of Jack Ltd’s assets represent

‘fair’ values. Prepare the group statement of financial position immediately following the takeover.