(i) Joseph Ltd acquired 80% of Mary Ltd on 1 Jan 20X1. The retained earnings on 1 Jan 20X1 were 19,400,000. There were no changes to the number of ordinary shares of both companies after the acquisition date.

(ii) The fair value of the freehold land on 1 Jan 20X1 was 60,000,000.

(iii) During the year, Mary Ltd sold goods to Joseph Ltd with an invoiced value of 2,400,000. It included a 25% profit markup. 50% of this inventory remains in Joseph Ltds inventory at the end of the year.

(iv) On 2 January 20X1, Joseph Ltd sold equipment for 8,000,000 to Mary Ltd. Joseph Ltd with a 20% margin on sales and this was included in its reported profits. The depreciation policy for equipment is straight line over 10 years economic life.

(v) At the end of the year 20X1, an impairment review was made and an impairment charge of 25% on goodwill arising on consolidation was required.

(vi) The dividend payable by Mary Ltd on 31 Dec 20X1 was to be paid on 31 Jan 20X2. Joseph Ltd has not accounted for the dividend receivable from Mary Ltd at the end of the year.

Required: Prepare the consolidated statement of financial position of Joseph Ltd as at 31 Dec 20X1.

Question: The statement of financial position of Joseph Ltd and Mary Ltd as at 31 Dec 201 are as follows: Question: The statement of financial position of Joseph Ltd and Mary Ltd as at 31 Dec 201 are as follows