A Question 1 The Statements of Financial Position of Tam Ltd and its investee companies, Geo Ltd and Luka Ltd, at 31 December 2018 are shown below: Tam Geo Luka Ltd Ltd Ltd Property, Plant and Equipment 000 000 000 Freehold Property 1,950 1,250 500 Plant and Machinery 795 375 285 Investments 1,500 4,245 1,625 785 Current assets Inventory 575 300 265 Trade and Other Receivables 330 275 370 Amounts receivable from Tam 15 Ltd Cash and Cash Equivalents 50 120 20 955 710 655 Total Assets 5,200 2,335 1,440 Equity Share Capital (1 ordinary 2,000 1,000 750 shares) Retained Earnings 1,460 885 390 Total Equity 3,460 1,885 1,140 Current Liabilities Bank Overdraft 560 Trade and Other Payables 470 300 270 Amounts payable to Geo Ltd 10 - Proposed Dividends 200 50 30 1,240 350 300 Non-Current Liabilities 12% Debentures 500 100 Total Liabilities 1,740 450 300 Total Equity and Liabilities 5,200 2,335 1,440 Additional Information: (i) (ii) Tam Ltd acquired 600,000 ordinary shares in Geo Ltd on 1 January 2011 for 1,000,000 when the retained earnings of Geo Ltd were 200,000. At the date of acquisition of Geo Ltd, the fair value of its freehold property was considered to be 400,000 greater than its value in Geo Ltd's statement of financial position. Geo Ltd had acquired the property in January 2001 and the buildings element (comprising 50% of the total value) is depreciated on cost over 50 years. (iii) Tam Ltd acquired 225,000 ordinary shares in Luka Ltd on 1 January 2017 for 500,000 when the retained earnings of Luka Ltd were 150,000. (iv) On 30 December 2017, Tam Ltd had sent a cheque amounting to 5,000, which had not been received by Geo Ltd until 5 January 2018. 33 (V) Geo Ltd manufactures a component used by Tam Ltd. Transfers are made by Geo Ltd at cost plus 25% and Tam Ltd held 100,000 inventory of these components at 31 December 2018. (vi) It is the policy of Tam Ltd to value non-controlling interests at its proportionate share of the fair value of the net assets. (vii) Since the date of acquisition, goodwill on consolidation of Geo Ltd has been impaired by 10,000. (viii) No entry has been made in the books of Tam Ltd for the dividends receivable from Geo Ltd or Luka Ltd at 31 December 2018. Required: Prepare the Consolidated Statement of Financial Position of the Tam Group at 31 December 2018. All calculations should be to the nearest 000. Total 40 marks