(a) The Statements of Financial Position of OMahony Ltd and Best Ltd as at 31 December 2018 are as follows: OMahony Ltd Best Ltd '000 '000 Assets Non-current assets 940 560 Investment in Best Ltd 460 0 1,400 560 Current Assets Inventory 160 120 Trade receivables 48 86 Cash 148 52 Dividends receivable 170 0 526 258 TOTAL ASSETS 1,926 818 Equity and Liabilities Ordinary share capital 1,200 260 Share premium 15 10 Retained earnings 180 220 1,395 490 Non-controlling interest Non-current liabilities 220 107 Current Liabilities Trade payables 39 85 Loans 127 76 Dividends declared 145 60 311 221 TOTAL EQUITY AND LIABILITIES 1,926 818 Page 10 of 10 The following additional information is available: 1. OMahony Ltd acquired 208,000 shares in Best Ltd on 31 December 2016 when the share premium and retained earnings were 10,000 and 80,000 respectively. The nominal value of the shares in OMahony Ltd and Best Ltd is 1. No shares have been issued since 31 December 2016. 2. The dividends declared by both OMahony Ltd and Best Ltd have been approved prior to the 31 December 2018. 3. At acquisition date, the fair value of the non-current assets of Best Ltd was 50,000 higher than their book value at that date. This valuation has not been reflected in the books of Best Ltd. 4. During the year ended 31 December 2018, Best Ltd sold goods to OMahony Ltd for 35,000. These goods were sold for at cost plus a mark-up of 25%. These goods are still on hand at the 31 December 2018. 5. Goodwill has been impaired by 12,000 in 2018, the first time since the acquisition of Best Ltd. Required Prepare a Consolidated Statement of Financial Position for the OMahony Group as at 31 December 2018. (13 marks) (b) (1) Define the terms provision, contingent liability and contingent asset as used in IAS 37, Provisions, Contingent Liabilities and Contingent Assets. (3 marks) (2) How does the guidance provided on provisions help enhance the reliability of financial statements? (5 marks) (c) Explain how negative goodwill arises on the acquisition of a subsidiary, and how this negative goodwill is accounted for in the group accounts.