5. The statements of financial position for Polo Ltd and Golf Lad as at 31 December 2016 are provided below: ASSETS Polo Ltd Golf Ltd Tk in '000 Tk in '000 Non-current assets Property, plant and equipment (Net) 72,500 10,625 Investment (available for sale) 8,750 81,250 10,625 Current assets Cash and cash equivalents 3,750 938 Accounts and other receivables 20,625 5,937 Closing inventories 19,375 2,500 Advance, deposits and prepayments 5,500 1,500 49,250 10,875 Total assets 130,500 21,500 EQUITY AND LIABILITIES Equity Share capital (Tk 10 ordinary shares) 62,500 3,125 Retained earnings 23,718 8,125 Reserve and surplus 1,283 Total equity 87,500 11,250 Non-current liabilities 12,188 2,500 Current liabilities Short term borrowings 5,312 250 Accounts and other payables 25,500 7,500 30,812 7,750 Total liabilities 43,000 10,250 Total equity and liabilities 130,500 21,500 Additional information 1) The profit for the year of Golf was Tk 3,125,000 and profits are assumed to accrue evenly throughout the year. 2) Golf sold goods to Polo for Tk 1,250,000. Half of these goods remained in Polo's inventories at 31 December 2016. Golf cars 25% margin on all sales. 3) Neither entity paid a dividend in the year ended 31 December 2016. 4) Polo Ltd acquired a 15% investment in Golf Lad on 1 June 2014 for Tk 1,000,000. The investment was classified as available for sale with any associated gains or losses recorded within reserve and surplus in Polo's individual financial statements. 5) On 1 July 2016, Polo acquired an additional 55% of the equity share capital of Golf at a cost of Tk 6,470,000. 6) The fair value of the original 15% investment at 1 July 2016 was Tk 1,250,000. In its own financial statements, Polo continues to hold the investment in Golf as an available for sale asset and it is recorded at its fair value of Tk 8,750,000 as at 31 December 2016. 7) At 1 July 2016, the fair value of the net assets acquired was assessed to be the same as their carrying value, with one exception, property, plant and equipment. Property, with a carrying value of Tk 4,000,000, had a fair value of Tk 5,000,000. The remaining useful life of this asset is 10 years from the date of acquisition. Depreciation on property, plant and equipment is charged on a monthly straight line basis. 8) It is the group policy to value non-controlling interest at fair value at the date of acquisition. The fair value of the non-controlling interest at 1 July 2016 was Tk 3,375,000. Requirement: Prepare the consolidated statement of financial position as at 31 December 2016 for the Polo Group. 20