750 000 340 000 500 000 (160 000) 680 000 400 000 160 000 240 000 (50 000) 370 000 650 000 ASSETS Property at cost/valuation Machinery @ Cost Accumulated depreciation Plant at carrying amount Investments in Chinks: 80 000 ordinary shares at fair value (cost price N$650 000) 25 000 12% cumulative preference shares at fair value (cost price N$40 000) 9% Debentures (since 2003) Unsecured loan at fair value Current Account-Bensam Inventory Trade and other receivables Bills receivable-Chinks Bank-NBS Bank 40 000 . 50 000 80 000 75 000 150 000 260 000 170 000 220 000 20 000 30 000 3 030 000 1 445 000 500 000 900 000 1 816 750 64 750 EQUITY AND LIABILITIES Ordinary shares at N$5 each Ordinary shares at N$2 each 12% Cumulative preference shares at 750 each Revaluation of property Retained earnings Interest bearing borrowings 9% debentures Loan Bensam Current Account-Chinks Trade and other payables Bills payable-Bensam Bank overdraft-NBS Bank Shareholders for dividends-Ordinary shares 75 000 150 000 306 000 170 000 100 000 70 000 . . 64 750 220 000 140 000 25 000 60 000 10000 28500 Additional Information: 1. Bensam acquired its interest in Chinks on January 2002. At that date the retained earnings of Chinks amounted to N$120 000. On the same day the property of Chinks which had a carrying amount of N$250 000 was revalued at N$350 000. it is company policy to revalue Chinks' property on 30 June every second year. Since 1 July 2002 Chinks has not purchased or sold any property. At the date of acquisition, consider the carrying amount of all the other assets and liabilities of Chinks to be equal to the fair value thereof. I 2. No dividend was declared or paid by Chinks during the period 1 July 2001 and 30 June 2002 3. Assume each ordinary share carries one vote. 4. Its group policy to show goodwill at cost in the financial statements. 5. Since September 2002, Chinks purchased all its inventories from Bensam at the normal selling price, determined by Bensam which is cost plus 20%. 6. Chinks sold a machine to Bensam on 1 January 2004 at a profit of N$25 000. The group provides for depreciation at 20% per annum according to the reducing balance method. 7. Bensam discounted the N$5 000 of the Bills receivable from Chinks at the bank before the expiry date of 31 July 2005. 8. On 29 June 2005, Chinks repaid N$10 000 of the existing loan from Bensam. Bensam received the repayment on 7 July 2005 9. The parent guarantees the overdraft of the subsidiary's bank account. 10. Ignore tax implications Required: Marks Prepare the consolidated Statement of financial position of Bensam and its 30 subsidiary as at 30 June 2005 according to the requirements of IFRS. showing all necessary workings as they carry marks