ASSIGNMENT 2 Summarised financial statements for three entities for the year ended 30 June 2016 are as follows: Statements of financial positionn Conte K'000 50,000 40,000 60,500 11,000 35,000 23500 12500 1500 180,000 72.500 40,000 Kante Messi K 000 K'000 Assets Property, plant and equipment Investments 30,000 15,000 7,500 Receivables 5,000 1,000 Cash and cash equivalents . Equity and liabilities Equity capital (K 1 shares) Retained earnings Liabilities 17,500 20,000 25000 7500 2500 180,000 72,500 40,000 50,000 105,000 27,500 37,500 1. On 1 July 2015, Conte purchased 22,500,000 shares in Kante for K 50,000,000. At that date, Kante had retained earnings of K 15,000,000 and no other components of equity Kante's net assets had a fair value of K 60,000,000 and the fair value of the non- controlling interest was K 27,500,000. It is group policy to value the non-controlling interest at acquisition at fair value. 2. The excess of the fair valuc of Kante's net assets over their carrying amounts at the acquisition date relates to property, plant and equipment. This had a remaining estimated useful life of five years at the acquisition date. Goodwill has been subject to an impairment review and it was determined to be impaired by K 3,500,000 3. On 1 July 2015, Conte purchased 5,250,000 equity shares in Messi for K 10,500,000 At that date, Messi had retained earnings of K 12,500,000 and no other components of equity During the year Conte sold goods to Kante for K 5,000,000 at a margin of 50%. By the reporting date, Kante had only sold 80% of these goods. Included in the receivables of Conte and the liabilities of Kante are intragroup balances of K 2,500,000 4, 5 On 5 July 2016, Conte received notification that an employee was claiming damages against them as a result of a workplace accident that took place on 30 April 2016 Lawyers have advised that there is a 60% chance that Conte will lose the case and will be required to pay damages of K 15,000,000 Required: Prepare the consolidated statement of financial position as at 30 June 2016 ASSIGNMENT 2 Summarised financial statements for three entities for the year ended 30 June 2016 are as follows: Statements of financial positionn Conte K'000 50,000 40,000 60,500 11,000 35,000 23500 12500 1500 180,000 72.500 40,000 Kante Messi K 000 K'000 Assets Property, plant and equipment Investments 30,000 15,000 7,500 Receivables 5,000 1,000 Cash and cash equivalents . Equity and liabilities Equity capital (K 1 shares) Retained earnings Liabilities 17,500 20,000 25000 7500 2500 180,000 72,500 40,000 50,000 105,000 27,500 37,500 1. On 1 July 2015, Conte purchased 22,500,000 shares in Kante for K 50,000,000. At that date, Kante had retained earnings of K 15,000,000 and no other components of equity Kante's net assets had a fair value of K 60,000,000 and the fair value of the non- controlling interest was K 27,500,000. It is group policy to value the non-controlling interest at acquisition at fair value. 2. The excess of the fair valuc of Kante's net assets over their carrying amounts at the acquisition date relates to property, plant and equipment. This had a remaining estimated useful life of five years at the acquisition date. Goodwill has been subject to an impairment review and it was determined to be impaired by K 3,500,000 3. On 1 July 2015, Conte purchased 5,250,000 equity shares in Messi for K 10,500,000 At that date, Messi had retained earnings of K 12,500,000 and no other components of equity During the year Conte sold goods to Kante for K 5,000,000 at a margin of 50%. By the reporting date, Kante had only sold 80% of these goods. Included in the receivables of Conte and the liabilities of Kante are intragroup balances of K 2,500,000 4, 5 On 5 July 2016, Conte received notification that an employee was claiming damages against them as a result of a workplace accident that took place on 30 April 2016 Lawyers have advised that there is a 60% chance that Conte will lose the case and will be required to pay damages of K 15,000,000 Required: Prepare the consolidated statement of financial position as at 30 June 2016