b): Haidar plc acquired 75% of Saqib Ltds ordinary shares on 1 April for an agreed consideration of Rs. 25 million when Saqib had retained earnings of Rs. 10,200,000. The draft statements of financial position of the two companies at 31st December are: The following information is relevant (i) The fair value of Saqib Ltds land at the date of acquisition was Rs. 4 million in excess of its carrying value. The fair value of Saqib Ltds other net assets approximated to their carrying values.

(ii) During the year Haidar plc sold inventory to Saqib Ltd for Rs. 2.4 million. The inventory had originally cost Haidar plc Rs. 2.0 million. Saqib Ltd held 25% of these goods at the year-end.

(iii) The two companies agreed their current account balances as Rs. 500,000 payable by Saqib Ltd to Haidar plc at the year-end. Inter-company current accounts are included in accounts receivable or payable as appropriate.

(iv) An impairment test at 31 December on the consolidated goodwill concluded that it should be written down by Rs. 625,000. (v) Also consider the following information:

Particulars H (Rs in 000) S (Rs in 000) Non-Current Assets: Property, plant and equipment 78,540 27,180 Investment in S 25,000 Nil Current Assets: Inventory 7,450 4,310 Accounts Receivable 12,960 4,330 Cash and Bank Nil 920 Total Assets 123,950 36,740 Equity: Share Capital 30,000 8,000 Share premium 20,000 2,000 Retained Earnings 64,060 15,200 Total Equity 114,060 25,200 Bank Loan 6,000 Current Liabilities: Accounts payable and accruals 5,920 4,160 Bank Overdraft 2,100 Nil Taxation 1,870 1,380 Total Equity and Liabilities 123,950 36,740

Required: Prepare a consolidated statement of financial position as at 31 December