AC AC2091 Financial Reporting|Test Statements of Financial Position as at 31 December 2017 QUESTION (20 marks) The Income Statement for the year ended 31 December 2017 and the Statements of Financial Position as at 31 December 2017 for Pen Plc., Crayon Ltd and Ink Ltd are given as follows: Income Statements for the year ended 31 December 2017 Statements of Changes in Equity for the year ended 31 December 2017 You are also given the following information: Layout Pen P1c acquired 60% of the shares in Crayon Ltd on 31 December 2014 for 850,000, when the Pen Plc Group share capital and reserves were 300,000. On the date of acquisition, Land belonging to Crayon had a fair value in excess of book value of 130,000. Pen P1c acquired 25\% of Ink Ltd on 1 Jan 2012 for 250,000, when the share capital and reserves were 800,000. Goodwill for all acquisitions is capitalised but there is impairment for the year ended 31 Dec 2017 of 130,000. The associate is not impaired. Any difference in inter-company balances is due to cash in transit. In 2017, Crayon Ltd sold Pen P1c. Inventory for 100,000. This Inventory had cost Crayon Ltd 80,000. Ink Ltd sold inventory to Pen Plc. for 20,000. This had cost Ink Ltd 10,000. There were no other intergroup sales. Half of the Inventory sold between group companies is still unsold at the year-end. Required Prepare a consolidated Income Statement and a Statement of Changes in Equity for the year ended 31 December 2017 and a consolidated statement of financial position as at 31 December 2017 Statements of Changes in Equity for the year ended 31 December 2017