(b) On 1 April 2019, DBT Ltd acquired 60% of the equity share capital of SMT Ltd in a share exchange of te in DBT for three shares in SMT. At that date the retained earnings of SMT were P5 million. The issue of shares has not yet been recorded by DBT. At the date of acquisition shares in DBT had a market value o each. Below are the summarised draft statements of financial position of both companies. STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2019 DBT Ltd p'ooo SMT Ltd Pooo Assets Non-current assets Property, plant and equipment Current assets Total assets Equity and liabilities Equity shares of P1 each Retained earnings 40,600 16,000 56,600 12,600 6,600 19,200 10,000 35,400 45,400 6,000 6,500 12,500 Non-current liabilities 10% loan notes Current liabilities Total equity and liabilities 3,000 8,200 56,600 4,000 2,700 19,200 The following information is relevant. At the date of acquisition, the fair values of SMT assets were equal to their carrying amounts with the exception of an item of plant, which had a fair value of P2 million in excess of its carrying amount. It hac remaining life of five years at that date (straight-line depreciation is used). SMT has not adjusted the carrying amount of its plant as a result of the fair value exercise. Sales from SMT to DBT in the post-acquisition period were P8 million. Sophistic made a mark up on cost of 40% on these sales. DBT had sold P5.2 million (at cost to DBT) of these goods by 30 September 2019. SMT trade receivables at 30 September 2019 include P600,000 due from DBT which did not agree with DBT corresponding trade payable. This was due to cash in transit of P200,000 from DBT to SMT. Both companies have positive bank balances. DBT has a policy of accounting for any non-controlling interest at full fair value. The fair value of the non-ce interest in SMT at the date of acquisition was estimated to be P5.9 million. Consolidated goodwill was not impaired at 30 September 2019. Required (a) Prepare the consolidated statement of financial position for DBT as at 30 September 2019. [38 (b) On 1 April 2019, DBT Ltd acquired 60% of the equity share capital of SMT Ltd in a share exchange of te in DBT for three shares in SMT. At that date the retained earnings of SMT were P5 million. The issue of shares has not yet been recorded by DBT. At the date of acquisition shares in DBT had a market value o each. Below are the summarised draft statements of financial position of both companies. STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2019 DBT Ltd p'ooo SMT Ltd Pooo Assets Non-current assets Property, plant and equipment Current assets Total assets Equity and liabilities Equity shares of P1 each Retained earnings 40,600 16,000 56,600 12,600 6,600 19,200 10,000 35,400 45,400 6,000 6,500 12,500 Non-current liabilities 10% loan notes Current liabilities Total equity and liabilities 3,000 8,200 56,600 4,000 2,700 19,200 The following information is relevant. At the date of acquisition, the fair values of SMT assets were equal to their carrying amounts with the exception of an item of plant, which had a fair value of P2 million in excess of its carrying amount. It hac remaining life of five years at that date (straight-line depreciation is used). SMT has not adjusted the carrying amount of its plant as a result of the fair value exercise. Sales from SMT to DBT in the post-acquisition period were P8 million. Sophistic made a mark up on cost of 40% on these sales. DBT had sold P5.2 million (at cost to DBT) of these goods by 30 September 2019. SMT trade receivables at 30 September 2019 include P600,000 due from DBT which did not agree with DBT corresponding trade payable. This was due to cash in transit of P200,000 from DBT to SMT. Both companies have positive bank balances. DBT has a policy of accounting for any non-controlling interest at full fair value. The fair value of the non-ce interest in SMT at the date of acquisition was estimated to be P5.9 million. Consolidated goodwill was not impaired at 30 September 2019. Required (a) Prepare the consolidated statement of financial position for DBT as at 30 September 2019. [38