2.3 Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income of the Sun Ltd Group for the financial year ended 28 February 2023. Include all totals and sub-totals. Show and reference all your workings and calculations clearly. Comparative figures and notes to the financial statements are not required. (25 marks)

Sun Ltd ("Sun") is a local company listed on the Johannesburg Stock Exchange. One of Sun's most recent investments is the investment in Star Ltd ("Star"). The following trial balances were obtained from the financial records of Sun and Star for the financial year ended 28 February 2023: On 1 June 2022, Sun acquired 100% of the ordinary share capital of Star, thereby obtaining control over Star. Star's retained earnings on 1 June 2022 was R50 150 and the ordinary share capital at acquisition was R100 000. 1. The following information relates to the at-acquisition matters: a) The purchase consideration payable by Sun was settled as follows: - R110 000 settled in cash on 1 June 2022; and - Sun issued 25000 ordinary shares. On the date of acquisition, the market price (fair value) of the Sun shares was R2.00 each and market price (fair value) of Star shares was R1.00 each. b) At acquisition date, all the assets and liabilities of Star were considered to be fairly valued. 2. All income and expenses (as well as the related tax expense) of Star were earned evenly throughout the current financial year. 3. At the end of the financial year, 28 February 2023 , Sun determined, as part of its annual impairment test, that the recoverable amount of Star as a cash generating unit is R680 000 . The accountant did not take this information into account when the trial balances were created. Ignore tax and deferred tax consequences relating only to impairment losses. Additional information: - Sun and Star both have a 28 February financial year end. - Sun accounts for investments in subsidiaries at cost in accordance with IAS 27.10(a) in its separate financial statements. - Sun is not a share dealer for income tax purposes. - Assume a companies' Income Tax rate of 28%. - Ignore the effects of Value Added Tax (VAT)