FIVE Parentis, a public listed company, acquired 600 million equity shares in Offspring on April 1, 2021. The purchase consideration was made up of: (a) A share exchange of one share in Parentis for two shares in Offspring. (b) The issue of TZS 100 10% loan note for every 500 shares acquired; and (c) A deferred cash payment of TZS 0.11 per share acquired payable on April 1, 2022. Parentis has only recorded the issue of the loan notes. The value of each Parentis share at the date of acquisition was TZS 0.75 and Parentis has a cost of capital of 10% per annum. The statements of financial position of the two companies at March 31, 2022 are shown below: Parentis Offspring TZS million TZS million TZS million TZS million ASSETS Property, plant and equipment (note (i)) 640 340 Investments 120 nil Intellectual property (note (ii)) nil 30 760 370 Current assets Inventory (note (iii)) 76 22 Trade receivables (note (iii)) 84 44 IAA MAF-2023 CORPORATE REPORTING (AFG 09214) Page 10 of 16 IAA MAF-2023 Bank nil 160 4 70 TOTAL ASSETS 920 440 EQUITY AND LIABILITIES Equity shares of 25 cents each 300 200 Retained earnings 1 April 2021 210 120 Retained earnings year ended 31 March 2022 90 300 20 140 600 340 Non-current liabilities 10% loan notes 120 20 Current liabilities Trade payables (note (iii)) 130 57 Current tax payable 45 23 Overdraft 25 200 nil 80 TOTAL EQUITY AND LIABILITIES 920 440 The following information is relevant: (i) At the date of acquisition the fair values of Offsprings net assets were approximately equal to their carrying amounts with the exception of its properties. These properties had a fair value of TZS 40 million in excess of their carrying amounts which would create additional depreciation of TZS 2 million in the post-acquisition period to March 31, 2022. The fair values have not been reflected in Offsprings balance sheet. (ii) The intellectual property is a system of encryption designed for internet use. Offspring has been advised that government legislation (passed since acquisition) has now made this type of encryption illegal. Offspring will receive TZS 10 million in compensation from the government. (iii) Offspring sold Parentis goods for TZS 15 million in the post-acquisition period. TZS 5 million of these goods are included in the inventory of Parentis at March 31, 2022. The profit made by Offspring on these sales was TZS 6 million. Offsprings trade payable account (in the records of Parentis) of TZS 7 million does not agree with Parentiss trade receivable account (in the records of Offspring) due to cash in transit of TZS 4 million paid by Parentis. (iv) Due to the impact of the above legislation, Parentis has concluded that the consolidated goodwill has been impaired by TZS 27 million. Required: Prepare the consolidated balance sheet of Parentis as at March 31, 2022