Full answer showing all the steps and approaches .

Question 1 Presented below are the draft individual statements for Storm Group Limited for the year ended 31 December 2016. Statement of Financial Position. STORM WIND BREEZE Assets Non-current Assets Land Property, Plant and Equipment Investment in A Investment in s 30,000 164,000 65.000 67,400 89,000 97,000 120,000 128,000 434.000 194.000 132,400 Current Assets Inventory Receivables Bank and Cash 108,500 196,700 40,200 75,500 124,800 50,000 68,400 83,500 25,400 Total Assets 779,400 444,300 309.700 200,000 120,000 Equity and Liabilities Share Capital N.V. 1.00 Share Premium Retained earnings Total equity 100,000 40,000 74,000 214.000 154,000 354,000 85,000 205.000 Non-Current Liabilities 148,000 Debenture Loans Current Liabilities Payables Taxation 220,000 57,400 192,100 47,200 71,200 24,500 Total Liabilities Total Equity and Liabilities 425,400 779.400 239,300 444,300_ 95,700 309,700 - This question continues on next page Question 1- Cont'd SOCE Extract-Movements in Reserves 01/01/2016 31/12/2016 STORM 95,000 59,000 Profits brought forward Profit for the year ended Dividends Paid Retained profits WIND 35,000 50,000 (2.000) 83,000 BREEZE 55,000 19,000 (2.000) 72,000 31/12/2016 154,000 Additional Information; 1) Storm Limited acquired 90,000 shares of Wind Limited on the 01/01/2016 when the retained profits in Wind Limited were 35,000. The consideration for the acquisition was a share issue of 25,000 Ordinary shares at 1.60 each and a cash payment of 120,000. On the date of acquisition the fair value of the land of Wind Limited was revalued at 45.000 on that date. All other assets of Wind Limited were stated at fair value. No adjustments to date have been made in the financial statements of Wind Limited to reflect any changes in fair values on assets at acquisition date. 2) Storm Limited acquired 45,000 shares of Breeze Limited on the 01/01/2016 for a consideration of 128,000 when the retained profits in Breezee were 55,000. On the acquisition date the fair value the non-current assets are equivalent to their book values. 3) Goodwill arising on acquisition of Wind and Breeze was reviewed for impairment at the reporting date and no impairment loss for either company was considered necessary. 4) Sales by Wind Limited to Storm Limited during the year amounted to 75.000. Of these sales 50% were still in the inventory of Storm as at 31/12/2016. The mark up on cost made by Wind Limited on these sales was 25%. 5) An amount of 10,000 is recorded in the receivables of Wind Limited and the payables of Storm Limited 6) Storm Limited received dividends paid by Wind Limited of 1,500 and Breeze Limited of 900 which were declared out of post-acquisition profits. 7) On the Reporting date, 31st December 2016 the fair value of the land of Storm Limited was revalued at 113,750 on that date. All other assets of Storm Limited were stated at fair value. No adjustments to date have been made in the financial statements of Storm Limited to reflect any changes in fair values on assets at the reporting date. Required; Prepare the Consolidated Statement of Financial Position of Storm Group as at 31 December 2016. Total (25 Marks)