On 1 April 2023, Pedantic acquired 60% of the equity share capital of Sophistic in a share exchange of two shares in Pedantic for three shares in Sophistic. The issue of shares has not yet been recorded by Pedantic. At the date of acquisition, shares in Pedantic had a market value of £6 each. The summarised draft financial statements of both companies for the year to 30 September 2023 are shown below.

The following information is available:
1. At the date of acquisition, the fair values of Sophistic's assets were equal to their carrying amounts with the exception of one item of plant, which had a fair value of £2 million in excess of its carrying amount. It had a remaining life of five years at that date [straight-line depreciation is used]. Sophistic has not adjusted the carrying amount of its plant as a result of the fair value exercise.

2. Sales from Sophistic to Pedantic in the post-acquisition period totalled £8 million. Sophistic made a mark-up on cost of 40% on these sales. Pedantic had sold £5. 2 million (at cost to Pedantic) of these goods by 30 September 2023.
3. Other than where indicated, items in the statement of comprehensive income are deemed to accrue evenly on a time basis.
4. Sophistic's trade receivables at 30 September 2023 include £600,000 due from Pedantic which did not agree with Pedantic's corresponding trade payable. This difference was due to cash in transit of £200,000 from Pedantic to Sophistic. Both companies have positive bank balances.
5. Pedantic has a policy of accounting for non-controlling interests on acquisition at fair value. For this purpose, the fair value of the goodwill attributable to the noncontrolling interest in Sophistic is £1.5 million. Consolidated goodwill was not impaired at 30 September 2023.

Required:
(a) Prepare a consolidated statement of comprehensive income for Pedantic for the year to 30 September 2023.
(b) Prepare a consolidated statement of financial position for Pedantic as at 30 September 2023.

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Statements of comprehensive income for the year to 30 September 2023 Pedantic £000 85,000 (63,000) Sales revenue Cost of sales Gross profit Distribution costs Administrative expenses Finance costs Profit before tax Taxation expense Profit for the year 22,000 (2,000) (6,000) (300) 13,700 (4,700) 9,000 Sophistic £000 42,000 (32,000) 10,000 (2,000) (3,200) (400) 4,400 (1,400) 3,000