1)Prepare the consolidated statement of financial position (CSFP) as at 31 December 2021 and consolidated income statement (CIS) for the year ended 31 December 2021.The statements of financial position for Bam Ltd, Gem Ltd and Rod Ltd as at 31 December 2021 and the income statements for the year ended 31 December 2021 are set out below:

Statements of Financial Position as at 31 December 2021

		Bam Ltd		Gem Ltd		Rod Ltd
Non-current assets		705,000		241,800		125,250
Investment in Gem Ltd		160,000
Investment in Rod Ltd		60,000
		925,000		241,800		125,250
Net current assets		172,500		84,000		42,000
Non-Current Liabilities		-142,500		-60,000		-65,000
Net Assets		955,000		265,800		102,250
Ordinary shares @ 1 each		420,000		105,000		45,000
Share Premium		30,000
Retained profit		505,000		160,800		57,250
		955,000		265,800		102,250

Income Statements for the year ended 31 December 2021

The following points are relevant to the preparation of the consolidated accounts:

Bam Ltd acquired 70% of the ordinary 1 shares of Gem Ltd on 1 January 2021 for 160,000 in cash. The balance of the retained profit in Gem Ltd was 75,000 at acquisition. The fair value of Gem Ltds non-current assets at the date of acquisition was 33,000 higher than their book value and it related to land. Gem Ltd does not account for this increase in its own accounts. On 1 January 2021 Bam Ltd acquired 30% of Rod Ltds issued share capital for 60,000 when its retained profit stood at 18,000. There is no difference between the book value and the fair value of the net assets at the date of acquisition. Bam Ltd sold goods to Gem Ltd for 15,000 in June 2021. The original cost of these goods was 12,000. Half of these goods were included in Gem Ltds closing inventory on 31 December 2021.

Income Statements for the year ended 31 December 2021 Bam Ltd Gem Ltd Rod Ltd f f f Sales 1,116,000 795,000 420,000 Cost of sales -712,500 -552,000 -296,250 Gross profit 403,500 243,000 123,750 Operating expenses -182,100 -115,950 -61,500 Operating profit 221,400 127,050 62,250 Interest -18,525 -4,200 -4,550 Profit before tax (PBT) 202,875 122,850 57,700 Tax -72,750 -37,050 -18,450 Profit after tax (PAT) 130,125 85,800 39,250