A- This question is compulsory Question 1 The financial statements of Enfield Plc, Botany Ltd and Chase Ltd are as follows Statement of Financial Positions as at 31 December 2020 Assets Non current Assets Enfield Plc Botany Ltd Chase Ltd Building (Net) 375,000 176,250 165,000 Investment in Chase Ltd 64,000 0 0 Investment in Botany Ltd 250,000 0 0 Total Assets 689,000 176,250 165,000 Current Assets Inventories 287,500 75,000 198,000 Trade Receivable 275,000 101,250 159,500 Current Account - Intragroup (*) 25,000 0 0 Cash and Equivalents 37,500 22,500 27,500 625,000 198,750 385,000 1,314,000 375,000 550,000 Equity and Liabilities 1 Common Shares 312,500 93,750 192,500 General Reserve 75,000 37,500 27,500 Revaluation Reserve 50,000 0 Retained Earnings (**) 375,000 150,000 110,000 812,500 281,250 330,000 Current Liabilities Trade payables Tax Payable Current Account - Intragroup 451,500 56,250 198,000 50,000 15,000 22,000 22,500 0 501,500 93,750 220,000 1,314,000 375,000 550,000 (*) Includes 22,500 receivables from Botany Ltd (**) Retained Earnings cover also the Earnings for the year The Statements of Comprehensive Income for the year ended 31 December 2020 Enfield Plc Botany Ltd Chase Ltd Sales Cost of Sales 788,400 187,500 330,000 -433,620 -103,125 -181,500 Gross Profit 354,780 84,375 148,500 Administrative Expense -236,520 -56,250 -99,000 Dividends received from the Associate 3,300 0 0 Share of Associate's profit 0 0 0 Other 0 0 0 Profit Before Tax 121,560 28,125 49,500 Corporate Tax 20% -24,312 -5,625 -9,900 Profit After Tax 97,248 22,500 39,600 Surplus on Revaluation 50,000 0 0 Comprehensive Income 147,248 22,500 39,600 Enfield Plc acquired 85% of the shares and the control of Botany Ltd on 1 January 2018 when Botany's Retained Earnings were 87,500 and the balance on Botany's General Reserve was 25,000. Common Share figure has not changed since acquisition (assume that these three altogether reflect the Fair Value of Net Assets). The fair value of the non-controlling interest (NCI) in Botany Ltd on 1 January 2018 was 38,235. NCIs are to be measured using method 2 (based on Fair Value or 'Full Goodwill' method under IFRS 3). Enfield Plc also acquired 25% of the shares in Chase Ltd on 1 January 2019 when the balance on Chase's Retained Earnings was 38,500 and its General Reserve was 11,000. Enfield Plc received 3,300 dividends from Chase Ltd in the year 2020. During the year 2020, Botany Ltd sold inventory to Enfield Plc for 125,000. The inventory's carrying amount in Botany's records was 102,000. By 31 December 2020, Enfield Plc had sold 65% of this inventory to third parties for 90,000. Total carrying amount of Botany's assets exceeded their recoverable amounts, hence 7% goodwill impairment has become inevitable Required: a) Prepare a consolidated statement of financial position at 31 December 2020. (25 Marks) b) Prepare a consolidated statement of comprehensive income for the year ending 31 December 2020 (corporate income tax rate is 20% if needed) (15 Marks) (Total: 40 Marks)