The following financial statements of Mark Ltd and its subsidiary Richards Ltd have been extracted from their financial records at 30 June 2023.

Other information

Mark Ltd had acquired its 80 per cent interest in Richards Ltd on 1 July 2014, that is, nine years earlier. At that date the capital and

At the date of acquisition all assets were considered to be fairly valued.

• The management of Mark Ltd measures any non-controlling interest at the proportionate share of Richards Ltd’s identifiable net assets.
• During the year, Mark Ltd made total sales to Richards Ltd of $162 500, while Richards Ltd sold $130000 in inventory to Mark Ltd.
• The opening inventory in Mark Ltd as at 1 July 2022 included inventory acquired from Richards Ltd of $105 000 that had cost Richards Ltd $87 500 to produce.
• The closing inventory in Mark Ltd includes inventory acquired from Richards Ltd at a cost of $84 000.
• This had cost Richards Ltd $70 000 to produce.
• The closing inventory of Richards Ltd includes inventory acquired from Mark Ltd at a cost of $30 000.
• This had cost Mark Ltd $24 000 to produce.
• The management of Mark Ltd believe that goodwill acquired was impaired by $7500 in the current financial year. Previous impairments of goodwill amounted to $56 250.
• On 1 July 2022 Mark Ltd sold an item of plant to Richards Ltd for $290 000 when its carrying value in Mark Ltd’s accounts was $202 500 (cost of $337 500, accumulated depreciation of $135 000). This plant is assessed as having a remaining useful life of six years.
• Richards Ltd paid $66 250 in management fees to Mark Ltd.
• The tax rate is 30 per cent.

REQUIRED
Provide the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and consolidated statement of changes in equity of Mark Ltd and Richards Ltd as at 30 June 2023.

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Detailed reconciliation of opening and closing retained earnings Sales revenue Cost of goods sold Gross profit Dividend revenue-from Richards Ltd Management fee revenue Profit on sale of plant Mark Ltd ($) Richards Ltd ($) 1 725 000 (1 160 000) 565 000 186 000 66 250 87 500 1 450 000 (595 000) 855 000