consolidation

On 1 April 2021 Jupiter plc acquired the following investments: 80% ordinary shares in Ceres Ltd at a cost of 64 million. 30% ordinary share capital in Mars Ltd at a cost of 2.5 each. Draft statements for these three companies as at 30 September 2021 are summarised below: Jupiter 000 Ceres 000 Mars 000 Assets Non-current assets Property, plant and equipment Investments 72,750 140,000 136,000 70,000 40,000 Current assets Total assets 58,000 334,000 51,100 123,850 28,000 138,000 Equity Ordinary Shares Retained earnings 140,000 124,000 22,500 60,100 70,000 46,000 Liabilities Non-current liabilities Loan Current liabilities Total equity and liabilities 54,000 16,000 334,000 15,000 26,250 123,850 4,000 18,000 138,000 5 CONTINUED OVERLEAF . .. . The following additional information is given: On 1 April 2021 the fair value of Ceres' assets was equal to their carrying value except for a building and Ceres's brand name (the brand name was recognised the business combination). The fair value of the building was 870,000 in exc 6 p'98 carrying value and the fair value of the brand name was 5,300,000. Ignor any depreciation effect of the fair value adjustment. The brand name was considered to have an indefinite life. Neither have been reflected in the separate financial statements. An impairment test on 30 September 2021 concluded that the consolidated goodwill was impaired by 940,000. The net profit after tax for the year ended 30 September 2020 was 36 million for Ceres and 24 million for Mars. Profits accrue evenly throughout the year. Inter-group sales from Jupiter to Ceres were 45m during the year ending 30 September 2021 with a net margin of 16%. At 30 September 2021, 25m of inter-group sales (at the selling price from Jupiter plc to Ceres Itd) were still in Ceres Ltd.'s inventory. No dividends were paid during the year by any of the companies and their share capital is unchanged since 1 April 2021. Non-controlling interests in any subsidiaries are to be measured at the appropriate proportion of the subsidiaries' identifiable net assets. Jupiter's own financial statements reflect investments at cost and the fair value of its investments, other than Ceres and Mars, have not changed. . . . . Required: Explain the nature of the relationship between Jupiter Plc, Ceres Ltd and Mars Ltd, and the associated accounting treatment, referring to relevant IFRS. (300 words maximum) Prepare the consolidated statement of financial position for the Jupiter plc group as at 30 September 2021. (Total. 300