a) Below are the separate statements of financial position of Ghana Ltd and its two investee companies as at 31 December 2017

	Ghana Ltd GHM	Nigeria Ltd GHM	Togo Ltd GHM
Non-current assets
Property, plant and equipment	2,458	1,410	870
Investment in Nigeria	500
investment in Togo	27 2,985	240 1,650	870
current assests
inventories	450	200	260
trade recivable	610	365	139
cash	1,300	660	515
total assests	4,285	2310	1,385
Equity
Ordinary share capital @GH1each	500	200	100
Share premium	250	120	50
Retained earnings	2,405 3,155	1,572 1,892	850 1,000
Current liabilities
Trade payables	1,130 4,285	418 2,310	385 1,385

The following information is relevant: i) On 1 January 2016, Ghana Ltd acquired 60% of the equity share capital Nigeria Ltd. The consideration consisted of the following elements: cash of GH500 million, a share exchange of two shares in Ghana Ltd for every five acquired shares in Nigeria Ltd, GH200 million to be paid after 2 years of acquisition and GH 400 million to be paid at the end of the fifth year of acquisition if Nigeria earns a return of 25% on its equity. No entries have been made in the nancial statements except the cash offer. At the date of acquisition, shares in Ghana Ltd had a market value of GH4 each and the shares of Nigeria Ltd had a stock market price of GH3 each. The cost of capital of Ghana is 10%. ii) On 30 July 2015 Ghana acquired 10% of Togo Ltd and on the same day Nigeria acquired 80% of Togo. iii) During the year, Nigeria sold goods to Togo of GH260 million including a mark-up of 25%. All of these goods remain in inventories at the year end. iv) Nigeria Ltd sold goods to Ghana for GH300 million at a margin of 20% and only quarter of these goods were left in inventories at the year end. v) The retained earnings of the three companies at the acquisition dates was: 30 July 2015 1 January 2016 GH'm GH'm Ghana 1,610 1,860 Nigeria 700 950 Togo 40 100 vi) At the date of acquisition, the fair values of Nigeria Ltd.s assets were equal to their carrying amounts with the exception of its property. This had a fair value of GH10 million below its carrying amount and a remaining useful life 5years. Nigeria Ltd has not incorporated this value change into its separate financial statements. vii) The fair value of Ghana's 10% holding in Togo on 1 January 2016 was GH50 million. Ghana and Nigeria hold their investments in subsidiaries at cost in their separate financial statements. viii) It is group policy to value the non-controlling interests at fair value at acquisition. For this purpose, Nigerias share price at that date can be deemed to be representative of the fair value of the shares held by the non-controlling interest. However, the directors valued the non-controlling interests in Togo at GH210million on 1 January 2016. ix) It was determined at the year-end that 20% of the goodwill relating to the acquisition of Nigeria and Togo were impaired. Page 3 of 6 Required Prepare the consolidated statement of financial position of Ghana group Ltd as at 31 December 201

b) Mawuena Ltd issued 1500 convertible loan note at par on 1st January 2015. The loan notes are redeemable in four years time at their par value of GH 200 per note. The loan note pays interest annually in arrears at an interest rate of 8%. Each loan note can be converted at the maturity date into 10 GH 1 shares. The effective interest rate for four year loan notes with no right of conversion is 12% and the risk-free annual interest rate for a four-year term is 7%. Required Show how the loan note should be treated in the financial statement of Mawuena Ltd in accordance with IFRS 9 Financial Instrument [10 marks] c) Asempa Ltd disposed of its entire holding in Daakye Ltd on 30the September 2013 for GH 12 million, on which date the net assets of Daakye Ltd was GH9.6 million. It is the policy of measuring NCI at acquisition at proportionate of the fair value of identifiable net asset and no goodwill is impaired as at 30th September 2013. Tax is charged at 25%. Required Calculate the profit or loss on disposal for: (i) Asempa Ltds individual financial statements (ii) Consolidated financial statements