2: Polymer plc Polymer plc is a publicly listed holding company with equity ownerships in two companies, Leo plc and Orion plc. The statements of financial position for Polymer. Leo and Orion are shown below ASSETS Statements of financial position as at 31 July 2022 Polymer Leo Orion Em m m Non-current assets Property, plant and equipment Investments 9,900 3,300 5,400 880 2,210 670 15,300 4,180 2,880 Current assets 580 460 550 Inventory Trade receivables 1,330 940 440 Cash and cash equivalents 550 170 280 2,460 1,570 1,270 Total assets 17,760 5,750 4,150 EQUITY AND LIABILITIES Equity Share capital - 1 shares 9,000 2,000 1,500 Retained earnings 6,140 2,385 2,230 15,140 4,385 3,730 Non-current liabilities 1,750 900 100 Current liabilities 870 465 320 Total equity and liabilities 17,760 5,750 4,150 Additional information: (1) On 1 August 202,1 Polymer plc acquired 1,800 million of the 2,000 million equity shares in issue in Leo plc when its retained earnings were 1,500 million. [Question continued on next page] (2) The terms of the acquisition are as follows: A share exchange of one Polymer plo share for every five shares acquired in Leo plc. On 1 August 2021, Polymer pic's shares were quoted at 2.50 per share. 3,000 million cash was paid on 1 August 2021. The 3,000 million cash paid on 1 August 2021 has already been recorded in the books of Polymer; however, the share issue is yet to be recorded in Polymer's books. The fair value of the non-controlling interest in Leo plc has been recorded at 600 million at the date of acquisition. The fair values of the net assets acquired were equal to book value except for buildings whose fair value was 500 million in excess of its book value. Leo plc had not incorporated the revaluation in its financial statements. The buildings are expected to have a remaining useful life of 50 years at the date of acquisition, and depreciation is charged to administrative expenses. (3) During the year ended 31 July 2022, Leo plc made cash sales of 300 million to Polymer plc at a margin of 25%. Polymer plc has resold four-fifth of these goods by the end of 31 July 2022. (4) On 1 May 2021, Polymer plc loaned 800 million to Leo plc. The loan bears interest at 10% per annum. All interest had been paid by 31 July 2022. (5) Polymer plc acquired a 40% stake in Orion plc on 1 February 2022 and paid cash of 1,400 million. Orion plc's retained earnings were 2,000 million on 1 February 2022. (6) An impairment test conducted on 31 July 2022 revealed that the goodwill on acquisition of Leo plc should be impaired by 50 million. Goodwill impairment losses are to be treated as an administrative expense. No impairment losses are required for investment in Orion plc. Required: Prepare the consolidated statement of financial position of Polymer plc as at 31 July 2022. [Total: 30 marks] [Continued on next page]