A Ltd acquired the following non-current investments on 1 April 2015: . 4 million equity shares in B Ltd, by means of an exchange of one share in A Ltd for every one share in B Ltd, plus Rs. 6.05 million in cash. The market price of shares in A Ltd at the date of the acquisition was Rs. 9 per share. The market price of B Ltd shares just before the acquisition was Rs. 7. The cash part of the consideration is deferred and will not be paid until two years after the acquisition. 25% of the equity shares in C Ltd, at a cost of Rs. 6 per share. The money to make this payment was obtained by issuing one million new shares in A Ltd at Rs. 9 per share. None of these transactions has yet been recorded in the summary statements of financial position that are shown below. The summarized draft statements of financial position of the three companies at 31 March 2016 are as follows. Statement of financial position A Ltd B Ltd C Ltd Rs. Million Rs. Million Rs. Million Assets Non-current assets Property, plant and equipment Other equity investments 60.0 0.8 60.8 18.2 79.0 31.0 Nil 31.0 8.0 39.0 16.0 Nil 16.0 9.0 25.0 Current assets Total assets Equity and liabilities Equity shares of Rs. 1 each Share premium Retained earnings: at 1 April 2015 - for year ended 31 March 2016 16.0 2.0 36.0 8.0 62.0 5.0 4.0 16.0 3.0 28.0 6.0 4.0 8.0 2.0 20.0 Non-current liabilities 6% loan notes 7% loan notes Current liabilities Total equity and liabilities 10.0 0 7.0 79.0 0 6.0 5.0 39.0 0 3.0 2.0 25.0 The following information is relevant: . A Ltd has chosen to value the non-controlling interest in B Ltd using the fair value method permitted by IFRS 3 (revised). The fair value of the non-controlling interests at the acquisition date is estimated to be the market value of the shares before the acquisition. At the date of acquisition of B Ltd, the fair values of its assets were equal to their carrying amounts. The cost of capital of A Ltd is 10% per year. . During the year ended 31 March 2016, B Ltd sold goods to A Ltd for Rs. 3.6 million, at a mark-up of 50% on cost. A Ltd had 75% of these goods in its inventory at 31 March 2016. There were no intra-group receivables and payables at 31 March 2016. . On 1 April 2015, A Ltd sold a group of machines to B Ltd at their agreed fair value of Rs. 3 million. At the time of the sale, the carrying amount of the machines was Rs. 2 million. The estimated remaining useful life of the plant at the date of the sale was four years. Plant and machinery is depreciated to a residual value of nil using straight-line depreciation and at 1 April 2015 the machines had an estimated remaining life of five years. "Other equity investments" are included in the summary statement of financial position of A Ltd at their fair value on 1 April 2015. Their fair value at 31 March 2016 is Rs.0.65 million. Impairment tests were carried out on 31 March 2016. These show that there is no impairment of the value of the investment in C Ltd or in the consolidated goodwill. . No dividends were paid during the year by any of the three companies. Required: Prepare the consolidated statement of financial position. (40 marks) Whiteboard Fullscreen se A Ltd acquired the following non-current investments on 1 April 2015: . 4 million equity shares in B Ltd, by means of an exchange of one share in A Ltd for every one share in B Ltd, plus Rs. 6.05 million in cash. The market price of shares in A Ltd at the date of the acquisition was Rs. 9 per share. The market price of B Ltd shares just before the acquisition was Rs. 7. The cash part of the consideration is deferred and will not be paid until two years after the acquisition. 25% of the equity shares in C Ltd, at a cost of Rs. 6 per share. The money to make this payment was obtained by issuing one million new shares in A Ltd at Rs. 9 per share. None of these transactions has yet been recorded in the summary statements of financial position that are shown below. The summarized draft statements of financial position of the three companies at 31 March 2016 are as follows. Statement of financial position A Ltd B Ltd C Ltd Rs. Million Rs. Million Rs. Million Assets Non-current assets Property, plant and equipment Other equity investments 60.0 0.8 60.8 18.2 79.0 31.0 Nil 31.0 8.0 39.0 16.0 Nil 16.0 9.0 25.0 Current assets Total assets Equity and liabilities Equity shares of Rs. 1 each Share premium Retained earnings: at 1 April 2015 - for year ended 31 March 2016 16.0 2.0 36.0 8.0 62.0 5.0 4.0 16.0 3.0 28.0 6.0 4.0 8.0 2.0 20.0 Non-current liabilities 6% loan notes 7% loan notes Current liabilities Total equity and liabilities 10.0 0 7.0 79.0 0 6.0 5.0 39.0 0 3.0 2.0 25.0 The following information is relevant: . A Ltd has chosen to value the non-controlling interest in B Ltd using the fair value method permitted by IFRS 3 (revised). The fair value of the non-controlling interests at the acquisition date is estimated to be the market value of the shares before the acquisition. At the date of acquisition of B Ltd, the fair values of its assets were equal to their carrying amounts. The cost of capital of A Ltd is 10% per year. . During the year ended 31 March 2016, B Ltd sold goods to A Ltd for Rs. 3.6 million, at a mark-up of 50% on cost. A Ltd had 75% of these goods in its inventory at 31 March 2016. There were no intra-group receivables and payables at 31 March 2016. . On 1 April 2015, A Ltd sold a group of machines to B Ltd at their agreed fair value of Rs. 3 million. At the time of the sale, the carrying amount of the machines was Rs. 2 million. The estimated remaining useful life of the plant at the date of the sale was four years. Plant and machinery is depreciated to a residual value of nil using straight-line depreciation and at 1 April 2015 the machines had an estimated remaining life of five years. "Other equity investments" are included in the summary statement of financial position of A Ltd at their fair value on 1 April 2015. Their fair value at 31 March 2016 is Rs.0.65 million. Impairment tests were carried out on 31 March 2016. These show that there is no impairment of the value of the investment in C Ltd or in the consolidated goodwill. . No dividends were paid during the year by any of the three companies. Required: Prepare the consolidated statement of financial position. (40 marks) Whiteboard Fullscreen se