26. No The draft statements of financial position at 31 March 2021 and statements of profit or loss for the year ended 31 March 2021 for three entities, are given below: Statements of financial position as at 31 March 2021 Notes A B ROOO ROO0 ROOO Non-current Assets (vi) 50,050 30,450 28,942 Property, plant and equipment Investments: 17,370,000 Ordinary shares in Bat cost (i); (ii); (iii) 35,610 3,980,000 Ordinary shares (iv) 8,000 in Plat at cost 93,660 30,450 28,942 Current Assets (v) 34,910 9,310 2,580 Inventory 38,790 16,530 2,660 Trade receivables 318 5,010 1.480 (vii) Cash and cash equivalents 78, 710 27, 320 5,558 172,370 57,770 34,500 Total Assets Equity and Liabilities 112,620 17,370 15,920 Equity shares of R1 each 0 3,470 0 Share premium 15,630 10,650 3,590 Retained earnings 128,250 31,490 19,510 Non-current liabilities - Long term borrowings 32,000 15,000 9.140 Current liabilities Trade payables 11,320 10,830 5,530 Loan interest payable 800 450 320 12,120 11,280 5,850 Total equity and liabilities 172,370 57,770 34,500 Summarised statements of profit or loss for the year ended 31 March 2021 Toon Loony Plat ROOO ROOO ROOO Revenue 130,000 67,410 31,890 Cost of sales (75,470) (40,470) (18,920) Gross profit 54,530 26,940 12,970 Expenses (37,660 (20,230) (9,460) 16,870 6,710 3,510 (1,600) (900) (640) Finance cost 15,270 5,810 2,870 (3,050) (1,160) (580) Income tax expense 12,220 4,650 2,290 Profit for the year Additional information: (i) A acquired all of 85 : equity shares on 1 April 2019 in a share for share exchange. The agreed purchase consideration was R35,610,000. B's retained earnings were R3,000,000 on 1 April 2019, (ii) The fair value of B's i property, plant and equipment on 1 April 2019 exceeded its carrying value by R1,200,000. The excess of fair value over carrying value was attributed to buildings owned by B 1. At the date of acquisition these buildings had a remaining useful life of 12 years. As accounting policy is to depreciate all property, plant and equipment using the straight line basis with no residual value. (iii) A carried out an impairment review of the goodwill arising on acquisition of B and found that as at 31 March 2021 the goodwill had NOT been impaired but had actually increased in value by R50,000. (iv) A purchased its shareholding in C on 1 April 2020 for R8,000,000. The fair value of C's net assets was the same as its carrying value at that date. A exercises significant influence over all aspects of cs financial and operating policies. (v) A occasionally trades with B During February 2021 A sold B goods for R960,000. B's had not paid for the goods by 31 March 2021. at 31 March 2021. A uses a mark-up of 331/3% on cost. 20% of the goods had been sold by B (vi) A sold a piece of machinery to B on 1 April 2020 for R115,000. The machinery had previously been used in A's business and had been included in Als property, plant and equipment at a carrying value of R90,000. A had recognised the profit on disposal in revenue. The machinery had a remaining useful life of 5 years on 1 April 2020. until (vii} B transferred R115,000 to A on 31 March 2021 which was not recorded by A April 2021. Required: (b) Prepare the consolidated statement of financial position for A as at 31 March 2021, in accordance with the requirements of International Financial Reporting Standards. 26 Notes to the financial statements are not required, but all workings must be clearly shown. (Total for Question Four = 25 marks) 26. No The draft statements of financial position at 31 March 2021 and statements of profit or loss for the year ended 31 March 2021 for three entities, are given below: Statements of financial position as at 31 March 2021 Notes A B ROOO ROO0 ROOO Non-current Assets (vi) 50,050 30,450 28,942 Property, plant and equipment Investments: 17,370,000 Ordinary shares in Bat cost (i); (ii); (iii) 35,610 3,980,000 Ordinary shares (iv) 8,000 in Plat at cost 93,660 30,450 28,942 Current Assets (v) 34,910 9,310 2,580 Inventory 38,790 16,530 2,660 Trade receivables 318 5,010 1.480 (vii) Cash and cash equivalents 78, 710 27, 320 5,558 172,370 57,770 34,500 Total Assets Equity and Liabilities 112,620 17,370 15,920 Equity shares of R1 each 0 3,470 0 Share premium 15,630 10,650 3,590 Retained earnings 128,250 31,490 19,510 Non-current liabilities - Long term borrowings 32,000 15,000 9.140 Current liabilities Trade payables 11,320 10,830 5,530 Loan interest payable 800 450 320 12,120 11,280 5,850 Total equity and liabilities 172,370 57,770 34,500 Summarised statements of profit or loss for the year ended 31 March 2021 Toon Loony Plat ROOO ROOO ROOO Revenue 130,000 67,410 31,890 Cost of sales (75,470) (40,470) (18,920) Gross profit 54,530 26,940 12,970 Expenses (37,660 (20,230) (9,460) 16,870 6,710 3,510 (1,600) (900) (640) Finance cost 15,270 5,810 2,870 (3,050) (1,160) (580) Income tax expense 12,220 4,650 2,290 Profit for the year Additional information: (i) A acquired all of 85 : equity shares on 1 April 2019 in a share for share exchange. The agreed purchase consideration was R35,610,000. B's retained earnings were R3,000,000 on 1 April 2019, (ii) The fair value of B's i property, plant and equipment on 1 April 2019 exceeded its carrying value by R1,200,000. The excess of fair value over carrying value was attributed to buildings owned by B 1. At the date of acquisition these buildings had a remaining useful life of 12 years. As accounting policy is to depreciate all property, plant and equipment using the straight line basis with no residual value. (iii) A carried out an impairment review of the goodwill arising on acquisition of B and found that as at 31 March 2021 the goodwill had NOT been impaired but had actually increased in value by R50,000. (iv) A purchased its shareholding in C on 1 April 2020 for R8,000,000. The fair value of C's net assets was the same as its carrying value at that date. A exercises significant influence over all aspects of cs financial and operating policies. (v) A occasionally trades with B During February 2021 A sold B goods for R960,000. B's had not paid for the goods by 31 March 2021. at 31 March 2021. A uses a mark-up of 331/3% on cost. 20% of the goods had been sold by B (vi) A sold a piece of machinery to B on 1 April 2020 for R115,000. The machinery had previously been used in A's business and had been included in Als property, plant and equipment at a carrying value of R90,000. A had recognised the profit on disposal in revenue. The machinery had a remaining useful life of 5 years on 1 April 2020. until (vii} B transferred R115,000 to A on 31 March 2021 which was not recorded by A April 2021. Required: (b) Prepare the consolidated statement of financial position for A as at 31 March 2021, in accordance with the requirements of International Financial Reporting Standards. 26 Notes to the financial statements are not required, but all workings must be clearly shown. (Total for Question Four = 25 marks)