Brick Ltd acquired 80% of the shares in Mortar Ltd on 1 January 2019 for an initial consideration of 39,000,000 cash and a further 13,000,000 will be paid on 1 January 2021. On 1 January 2019, Mortar Ltd had retained earnings of 7,800,000 and the market price of its shares was 1.50 per share. The Statement of Financial Position of Brick Ltd and its subsidiary Mortar Ltd as at 31 December 2019 are as follows: Brick Ltd 000 Mortar Ltd 000 Non-current Assets: Property, plant and equipment at cost 65,000 52,000 Investment in Mortar Ltd 50,791 -------- 115,791 52,000 Current Assets: Inventories 3,900 10,400 Trade receivables: Brick Ltd ------- 13,000 Other 20,800 9,100 Cash 2,600 ------- 27,300 32,500 Total Assets 143,091 84,500 Equity and Liabilities Equity Ordinary Share Capital at 1 each 58,500 32,500 Revaluation Reserve 15,600 6,500 Retained earnings 33,210 36,400 107,310 75,400 Liabilities Non-Current Liabilities: Deferred consideration for Investment in Mortar Ltd. 12,381 Current Liabilities: Trade Payables: Mortar Ltd 10,400 ------- Other payables 13,000 9,100 35,781 9,100 Total Equity and Liabilities 143,091 84,500 The following additional information was provided: The cost of capital of Brick Ltd is 5%. Mortar Ltd has an internally developed brand named Foder which was valued at 6,500,000 on 1 January 2019. The share capital and revaluation surplus of Mortar Ltd has not changed since that date. There is no impairment of goodwill. The group policy is to value non-controlling interest at full fair value. Non-controlling interest was valued at 11,700,000 on the acquisition date. On 31 December 2019 Mortar Ltd had invoiced Brick Ltd for goods to the value of 2,600,000 and Brick Ltd had sent payment in full but this had not been received by Mortar Ltd. Required: (a) Prepare the Consolidated Statement of Financial Position of Brick Group as at 31 December 2019 in accordance with the IFRS 3, Business Combinations and IAS 27, Consolidated and Separate Financial Statements. Show all your workings clearly and clearly state any assumptions you make. Round up all figures in the consolidated statement to the nearest whole number. (25 Marks) (b) Explain the circumstances under which a parent company may be exempted from preparing group accounts (consolidation). (8 Marks)