Property, plant and equipment are to be depreciated over five years. During 2017, 50% of the inventory was sold outside the group on normal trading terms, with the remaining inventory expected to be sold in 2018. The acquisition of Bow Limited has not yet been incorporated into the Archer Group financial statements shown above.

2. On 1 January 2017 Archer plc purchased 30% of Arrow Limited. Archer plc contributes to Arrow plc’s activities and is actively involved in Arrow Limited's financial and operating policy decisions. Arrow Limited’s statement of financial position at 1 January 2017 showed:

Apart from recording the cost of the investment, the acquisition of Arrow Limited has not yet been incorporated into the Archer Group financial statements shown above.
Requirement Prepare the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2017 and the statement of financial position as at that date for Archer Group.

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m Share capital 600 Revaluation surplus 300 Retained earnings 1,100 2,000