Bigger Company owns all of the issued capital of Smaller Company. The financial statements of Bigger Company and Smaller Company at 30 June 2023 are as follows:

Bigger Company acquired its 100 per cent interest in Smaller Company on 1 July 2022 for a cost of $5000.

The share capital and reserves of Smaller Company on the date of acquisition are:

The directors believe that goodwill has been impaired by 20 per cent in the year to 30 June 2023.

REQUIRED

Provide the consolidated statement of profit or loss and other comprehensive income and statement of financial position for Bigger Company and its controlled entity for the year ending 30 June 2023.

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Reconciliation of opening and closing retained earnings Profit before tax Tax Profit after tax Opening retained earnings less Dividends proposed Closing retained earnings Statement of financial position Shareholders' funds Retained earnings Share capital Liabilities Accounts payable Dividends payable Assets Cash Accounts receivable Dividends receivable Bigger Company Smaller ($) ($) 500 (125) 375 4 000 4375 (175) 4 200 4 200 1 250 2 500 175 8 125 250 125 250 500 (200) 300 1 500 1800 (250) 1 550 1 550 2 500 500 250 4 800 350 650 I Company