Dominiguez Plais a company incorporated in Ivory Coast in 2010 to produce and sell detergents and edibles, in order to consolidate its dominance in the Ivorian market, the board of directors decided to acquire strategic shareholding in two less dominant competitors, Banso Plc and Twifo Plc. On 1 January 2019 Dominguez Plc acquired the following non-current investments in the capital market: 3 million of the 4 million equity shares in Banso Plc by an exchange of one share in Dominguez Plc for every two shares in Banso Plc plus CFA1.25 per acquired Banso Plc's share in cash. The market price of each Dominguez Ple's share at the date of acquisition was CFA6.00 and the market price of each Banso Plc's share at the date of acquisition was CFA3.25. ii. 30% of the 4 million equity shares of Tuifo Plc at a cost of CFA7.50 per share in cash. Only the cash consideration of the above investments has been recorded by Dominjguez Plc. The sumun.arixed draft financial statements of the three companies at 31 December 2019 are: Statement of profit or loss and other comprehensive income for the year ended 31 December 2010 Dominiguez Banso Ivifo CFA'000 CF41000 CFA.000 Revenue () 26,000 9,000 16,000 Cost of sales (13,000) (4,000) (10,000) Gross profit 13,000 5,000 6,000 Operating expenses (2,000) (1,400) (100) Other income: Profit on sale of plant (1) 500 Eamings before interest and tax 11,500 3,600 5,900 Finance costs (1,250) (200) (100) Profit before tax 10,250 3,400 5,800 Taxation (1,400) (500) (800) Profit for the year Other comprehensive income 8,850 400 2,900 5,000 Total comprehensive income 9,250 2,900 5,000 Banso CFA 000 Twifo CF4.000 Statement of Financial Position as at 31 December 2019 Dominguez CFA'000 Non-current assets Property, plant and equipment (ix) 18,900 Investments Barso and Tuito 12,750 Investments in Other Securities (v) 6,500 10,400 nil 18,000 nil 38,150 10,400 18,000 Current assets Inventory (l) Trade receivables 6.900 3,200 6,200 1,500 3,600 2,400 Total assets 48,250 18,100 24,000 Equity and liabilities Stated capital Revaluation Reserve Income surplus 4,000 4,000 10,000 400 24,850 8,900 16,000 35,250 12,900 20,000 Non-current liabilities 10% Loan notes (viii) Net Pension Plan Obligation (x) 5,000 150 1,000 1,000 Current liabilities 7.850 4,200 3,000 Total equity and liabilities 48,250 18,100 24,000 The following information is relevant: i. At the date of acquisition Banso Plc had five years remaining of an agreement to supply goods to one of its major customers. Banso Plc believes it is highly likely that the agreement will be renewed when it expires. The directors of Dominiguez Picestimate that the value of this customer-based contract has a fair value of CFA1,000,000. ii. On 2nd January 2019, Dominigwaz Picsold an item of plant to Benso Plc at its agreed fair value of CFA2,500,000. Its carrying amount prior to the sale was CFA2,000,000. The estimated remaining life of the plant at the date of sale was five years (straight-line depreciation) iii. During the year ended 31 December 2019, Banso. Plc sold goods to Dominguez Bicfar CFA2,700.000. Banso, Plc had marked up these goods by 50% on cost. Dominguez Pichad a third of the goods still in its inventory at 31 December 2019. There were no intra-group payables/receivables at 31 December 2019. Impairment tests on 31 December 2019 concluded that neither consolidated goodwill nor the value of the investment in Tuito Plc were impaired. iv. The investments in other securities are included in Dominguez Plc's statement financial position (above) at their fair value on 1 January 2019, but they have a fair va of CFA0,000,000 at 31 December 2010. The securities are designated as financial as fair value through other comprehensive income vii. viii. No dividends were paid during the year by any of the companies. It is the group policy to value non-controlling interest at acquisition at full (or fair) va For this purpose the share price of Banso Plc at this date should be used. The 10% loan note issued by Dominiguez Dle CFA5,000,000) is a 4-year bond issue par on 1 January 2019. Issue costs were CFA200,000. The Bonds would be redeemed 31 December 2022 at a premium. Interests are paid annually in arrears at 31 Decem and the effective interest rate is thus determined as 12% per annum. The issue costa the 2019 interest of CFA500,000 have been duly paid and accounted for as part of finance costs. Dominiguez Plc bought a new car on credit from Toyota Company for use by the CEO a price of US$100,000 on 1st October 2019. The invoice value was due for settlemen two equal instalments on 30th November 2010 and 31 January 2020. The first instalm was paid on the due date. The exchange rate moved as follows: 1st October 2019 30 November 2019 31 December 2019 CFA5.00 $ CFA5.20/5 CFA5.505 It is realised that the entire transactions (acquisition of the car and the instalment payment) h been omitted from the accounting records. XI. Depreciation of the car is to be calculated and accounted for at the rate of 20% per annum rata) Dominiguez Picintroduced a tier 3 pension scheme for its management staff in 2016 operated it as a defined benefit scheme. At 1 January 2019 the fair value of the asset the defined benefit plan was measured at CFA1,100,000 and the present value of defined benefit obligation was CFA1,250,000. On 31 December 2019, the plan recei contributions of CFA490,000 from the company and paid out benefits of CFA190,000 retired staff. The current service cost for the year was CFA360,000. The plan a yielded average retum of 13% during 2019 and the plan obligation attracted an aver interest rate of 12%. After these transactions, the fair value of the plan's assets at December 2019 was assessed at CFA1,600,000 and the present value of the deft benefit obligation was CFA1,700,000. The 2019 transactions relating to the scheme have not been recorded in the accounting led and therefore do not for part of the draft financial statements. You are required to: a) Prepare the consolidated statement of profit or loss and other comprehensive income Dominguez Plc's group for the year ended 31 December 2019. b) Draft the consolidated statement of financial position as at 31 December 2019. Dominiguez Plais a company incorporated in Ivory Coast in 2010 to produce and sell detergents and edibles, in order to consolidate its dominance in the Ivorian market, the board of directors decided to acquire strategic shareholding in two less dominant competitors, Banso Plc and Twifo Plc. On 1 January 2019 Dominguez Plc acquired the following non-current investments in the capital market: 3 million of the 4 million equity shares in Banso Plc by an exchange of one share in Dominguez Plc for every two shares in Banso Plc plus CFA1.25 per acquired Banso Plc's share in cash. The market price of each Dominguez Ple's share at the date of acquisition was CFA6.00 and the market price of each Banso Plc's share at the date of acquisition was CFA3.25. ii. 30% of the 4 million equity shares of Tuifo Plc at a cost of CFA7.50 per share in cash. Only the cash consideration of the above investments has been recorded by Dominjguez Plc. The sumun.arixed draft financial statements of the three companies at 31 December 2019 are: Statement of profit or loss and other comprehensive income for the year ended 31 December 2010 Dominiguez Banso Ivifo CFA'000 CF41000 CFA.000 Revenue () 26,000 9,000 16,000 Cost of sales (13,000) (4,000) (10,000) Gross profit 13,000 5,000 6,000 Operating expenses (2,000) (1,400) (100) Other income: Profit on sale of plant (1) 500 Eamings before interest and tax 11,500 3,600 5,900 Finance costs (1,250) (200) (100) Profit before tax 10,250 3,400 5,800 Taxation (1,400) (500) (800) Profit for the year Other comprehensive income 8,850 400 2,900 5,000 Total comprehensive income 9,250 2,900 5,000 Banso CFA 000 Twifo CF4.000 Statement of Financial Position as at 31 December 2019 Dominguez CFA'000 Non-current assets Property, plant and equipment (ix) 18,900 Investments Barso and Tuito 12,750 Investments in Other Securities (v) 6,500 10,400 nil 18,000 nil 38,150 10,400 18,000 Current assets Inventory (l) Trade receivables 6.900 3,200 6,200 1,500 3,600 2,400 Total assets 48,250 18,100 24,000 Equity and liabilities Stated capital Revaluation Reserve Income surplus 4,000 4,000 10,000 400 24,850 8,900 16,000 35,250 12,900 20,000 Non-current liabilities 10% Loan notes (viii) Net Pension Plan Obligation (x) 5,000 150 1,000 1,000 Current liabilities 7.850 4,200 3,000 Total equity and liabilities 48,250 18,100 24,000 The following information is relevant: i. At the date of acquisition Banso Plc had five years remaining of an agreement to supply goods to one of its major customers. Banso Plc believes it is highly likely that the agreement will be renewed when it expires. The directors of Dominiguez Picestimate that the value of this customer-based contract has a fair value of CFA1,000,000. ii. On 2nd January 2019, Dominigwaz Picsold an item of plant to Benso Plc at its agreed fair value of CFA2,500,000. Its carrying amount prior to the sale was CFA2,000,000. The estimated remaining life of the plant at the date of sale was five years (straight-line depreciation) iii. During the year ended 31 December 2019, Banso. Plc sold goods to Dominguez Bicfar CFA2,700.000. Banso, Plc had marked up these goods by 50% on cost. Dominguez Pichad a third of the goods still in its inventory at 31 December 2019. There were no intra-group payables/receivables at 31 December 2019. Impairment tests on 31 December 2019 concluded that neither consolidated goodwill nor the value of the investment in Tuito Plc were impaired. iv. The investments in other securities are included in Dominguez Plc's statement financial position (above) at their fair value on 1 January 2019, but they have a fair va of CFA0,000,000 at 31 December 2010. The securities are designated as financial as fair value through other comprehensive income vii. viii. No dividends were paid during the year by any of the companies. It is the group policy to value non-controlling interest at acquisition at full (or fair) va For this purpose the share price of Banso Plc at this date should be used. The 10% loan note issued by Dominiguez Dle CFA5,000,000) is a 4-year bond issue par on 1 January 2019. Issue costs were CFA200,000. The Bonds would be redeemed 31 December 2022 at a premium. Interests are paid annually in arrears at 31 Decem and the effective interest rate is thus determined as 12% per annum. The issue costa the 2019 interest of CFA500,000 have been duly paid and accounted for as part of finance costs. Dominiguez Plc bought a new car on credit from Toyota Company for use by the CEO a price of US$100,000 on 1st October 2019. The invoice value was due for settlemen two equal instalments on 30th November 2010 and 31 January 2020. The first instalm was paid on the due date. The exchange rate moved as follows: 1st October 2019 30 November 2019 31 December 2019 CFA5.00 $ CFA5.20/5 CFA5.505 It is realised that the entire transactions (acquisition of the car and the instalment payment) h been omitted from the accounting records. XI. Depreciation of the car is to be calculated and accounted for at the rate of 20% per annum rata) Dominiguez Picintroduced a tier 3 pension scheme for its management staff in 2016 operated it as a defined benefit scheme. At 1 January 2019 the fair value of the asset the defined benefit plan was measured at CFA1,100,000 and the present value of defined benefit obligation was CFA1,250,000. On 31 December 2019, the plan recei contributions of CFA490,000 from the company and paid out benefits of CFA190,000 retired staff. The current service cost for the year was CFA360,000. The plan a yielded average retum of 13% during 2019 and the plan obligation attracted an aver interest rate of 12%. After these transactions, the fair value of the plan's assets at December 2019 was assessed at CFA1,600,000 and the present value of the deft benefit obligation was CFA1,700,000. The 2019 transactions relating to the scheme have not been recorded in the accounting led and therefore do not for part of the draft financial statements. You are required to: a) Prepare the consolidated statement of profit or loss and other comprehensive income Dominguez Plc's group for the year ended 31 December 2019. b) Draft the consolidated statement of financial position as at 31 December 2019