3 Assume that it is now 31 January 2022. The following information is relevant to the preparation of Cropstone Lid's consolidated and single entity financial statements for the year ended 31 December 2021. 3.1 Cropstone Ltd has a number of subsidiary companies, one of which, Dentone Ltd, was acquired during the current year. The following information is required to complete Cropstone Ltd's consolidated statement of cash flows for the year ended 31 December 2021. Consolidated statement of profit or loss for the year ended 31 December 2021 (extract) Share of profit of joint venture Profit attributable to: Owners of Cropstone Ltd Non-controlling interests 113,000 385,700 46,115 Consolidated statement of financial position as at 31 December 2021 (extract) 2021 2020 Non-current assets Property, plant and equipment 445,100 326,500 Investment in joint venture 336,900 248,900 Equity and liabilities Ordinary share capital (1 shares) 300,000 210,000 Share premium account 98,500 40,000 Retained earnings 508,300 218,600 906,800 468,600 Non-controlling interests 159,800 136,500 Additional information: (1) On 1 April 2021 Cropstone Ltd acquired 85% of Dentone Ltd's ordinary shares. The consideration consisted of cash and the issue of 30,000 1 ordinary shares in Cropstone Ltd. The market value of one share in Cropstone Ltd at 1 April 2021 was 1.45. At the acquisition date Dentone Ltd's reported net assets were: Property, plant and equipment Trade receivables Cash and cash equivalents Trade payables E 201,500 15.885 2,215 (21,700) 197,900 All of Dentone Ltd's assets and liabilities were recorded at their fair value. except for a piece of land which had a fair value of 50,000 in excess of its carrying amount. Cropstone Ltd measures the non-controlling interest using the proportionate method. Goodwill arising on the acquisition was 35,000. (2) On 1 October 2021 Cropstone Ltd made a share issue at a premium over nominal value. (3) Depreciation of 146,900 was recognised in the consolidated statement of profit or loss for the year ended 31 December 2021. During the year there was an acquisition of plant for cash and a disposal of a piece of equipment. The equipment had a carrying amount of 34,000 at the date of disposal and was sold for a profit of 2,000. Requirement Prepare the investing activities and financing activities sections of Cropstone Ltd's consolidated statement of cash flows for the year ended 31 December 2021, in so far as the information in part 3.1 allows. (10 marks) 3.2 On 1 January 2021 Cropstone Ltd entered into a contract for the right to use a machine for four years. The contract constituted a lease under IFRS 16, Leases. Under the terms of the lease, Cropstone Ltd was required to pay a non-refundable deposit of 5,000 on 1 January 2021, to be followed by four annual lease payments of 8,977 in arrears on 31 December year. commencing on 31 December 2021. The interest rate implicit in the lease is 7.6% pa and the present value of the future lease payments not paid on commencement of the lease is 30,000. On 1 January 2021, the machine had a remaining useful life of four years to Cropstone Ltd. Depreciation related to the lease is presented within cost of sales. Requirements (a) Using the information in 3.2 only, prepare extracts from the single entity statement of profit or loss of Cropstone Ltd for the year ended 31 December 2021 and statement of financial position as at that date reflecting the lease. (5 marks) (b) The Conceptual Framework identifies comparability, verifiability, timeliness and understandability as characteristics. Briefly outline each characteristic and explain how it is applied in IFRS 16, Leases