The statements of financial position of Rock ple (“Rock”) and Roll ple (“Roll”) as at 31 December 2017 are presented below.

Additional Information:
Ia On 1 January 2015, Rock purchased the following shares and debentures in Roll:
* 2,400,000 €0.50 ordinary shares;
* 400,000 8% €1 preference shares;
¢ 10% debentures with a nominal value of €320,000.
The nominal value of Roll’s share capital and debentures has not changed since 1 January 2015. On that date, the share premium account and the retained earnings of Roll stood at €160,000 credit and €560,000 debit respectively. With respect to the preference shares, there is no contractual right to the dividend and its payment is solely at the discretion of the directors. Consequently, the preference shares are classified as equity rather than debt. With respect to the measurement of non-controlling interests at the date of acquisition, the proportionate share method equated to the fair value method.
- On 1 January 2015, the property, plant and equipment of Roll had a fair value of €800,000 in excess of their book values, and a remaining useful economic life of 20 years on this date. This has not yet been reflected in the books of Roll.
. During the year ended 31 December 2017, Rock sold equipment to Roll for él1, 000,000.
at a profit of 25% of selling price. Roll charges a full year’s depreciation in the year of acquisition, charging €200,000 depreciation in the year ended 31 December 2017 on the basis that the equipment had a useful economic life of five years.
. During the year ended 31 December 2017, Roll paid an interim dividend to its preference and ordinary shareholders of €32,000 and €50,000 respectively. Dividends proposed, but not yet approved, at 31 December 2017 to Roll’s preference and ordinary shareholders amount to €32,000 and €160,000 respectively. At 31 December 2017, Roll has accrued the debenture interest payable for the period 1 July 2017 to 31 December 2017. Rock does not accrue dividends or interest receivable.
. The directors of Rock believe that the goodwill arising on the acquisition of Roll was impaired for the first time by €333,000 during the year ended 31 December 2017.
Requirement Prepare the consolidated statement of financial position for the Rock Group as at 31 December 2017.

Transcribed Image Text:

Rock Roll 000 000 ASSETS Non-current Assets Property, plant and equipment 5,760 4,000 Investment in Roll 3,330 Current Assets 1,260 864 10,350 4,864