Aston acquired 100% of the share capital of Mart for $40,000 on 1 January 2006 when

the balance on the retained earnings of Mart stood at $9,000. The statements of

financial position of the two companies are as follows at the 31 December 2009:

Particular Aston

Amount ($'000)

Mart

Amount ($'000)

Non-current assets

Property, plant and equipment 88 39

Investment in Mart 40 ----

128 39

Current assets

Inventory 80 26

Receivables 24 32

Bank and cash ---- 15

104 73

Total Assets 232 112

Equity

Called-up share capital 100 24

Retained earnings 46 48

Current liabilities

Overdraft 14 10

Payables 72 30

86 40

Total Equity & Liabilities 232 112

At the date of acquisition, the fair value of Mart's property, plant and equipment was

$5,000 higher than the carrying value. These assets were estimated to have a

remaining useful economic life of ten years at this date. A full year's depreciation

charge is to be made in the year of acquisition. The fair value of all other net assets

was equal to the carrying values.

Aston's payables balance includes $6,000 payable to Mart, and Mart's receivables

balance includes $20,000 owing from Aston. At the year end, it was established that

Mart had dispatched goods to Aston with a selling price of $9,000 and that Aston did

not receive delivery of these items until after the year end. At the same time, Aston

had put a cheque in the post to Mart for $5,000 which also did not arrive until after the

year end.

In addition to the goods in transit of $9,000, there were also some items included in

Aston's inventory which had been purchased by Aston at the price of $21,000 from

Mart. Mart had priced these goods at a markup of 20%.

The group policy toward goodwill arising on consolidation is to subject it to an annual

impairment review. It was felt that the goodwill should be carried at 60% of its

original value.

Requirement: Prepare a consolidated statement of financial position (CSFP) as at 31

December 2009 for the Aston Group.