a) prepare the consolidated statement of financial position at 31 march 2022 b) Explain what criteria would be necessary to confrim that Astute is a joint arrangement, and in particular a joint venture

Question 1 At 31 March 2022 Clever plc has one subsidiary Smart Ltd. It also has an investment in Astute Ltd, along with three other equal investors. The statement of financial positions of the three companies at 31 March 2022 are: Additional information: (1) On 1 April 2021 Clever plc acquired 80% of the ordinary shares of Smart Ltd for 125,000 when Smart's retained earnings were 39,000. (2) Clever measures non-controlling interest (NCl) using the fair value method. The fair value of the NCI in Smart at the date of acquisition was estimated as 26,000. (3) The fair value of Smart's assets and liabilities were equal to their carrying amounts with the exception of machinery which had a fair value 15,000 higher than its carrying amount. The machinery had a remaining life of 10 years on 1 April 2021. (4) Over the final three months of the year Clever sold goods to Smart for 12,800, earning a gross margin. Clever still held 75% of these goods in inventory at 31 March 2022. The transactions were on credit and, at 31 March 2022, 3,750 is owed from Smart to Clever. (5) Astute Ltd is a joint venture, set up by Clever and its fellow venturers on 1 October 2021. Each venturer contributed 25,000 for their 25% share in Astute