Illustration 11: Comprehensive Example Pitts Ltd acquired 60% of Sitts Lid on 1 January 2011 for #2,000,000, the retained earnings of Sitts were #785,000 at that date. At that date Sitts held land which had a fair value of #500,000 more than its carrying value. It is P's policy to recognize non-controlling interest at the date of acquisition as a proportionate share of net assets. During the period Pitts had sold goods to Sitts for #50,000 at a mark-up of 25% on cost. Sitts had sold some of this inventory to third parties but still held inventory bought from Pitts for N12,500 at 31 December 2011. The statements of financial position of P and S as at 31 December 2011 were as follows: P(N) S (N) Assets: Investment in S, at cost 2,000,000 Other non-current assets 650,000 826,000 Current assets: Inventory 100,000 80,000 Amount owed by S 6,000 Na Other current assets 374,000 320,000 3,130,000 1,226,000 Equity Share capital 100,000 50,000 Retained earnings 2,590,000 1,050,000 Current liabilities Amount owed P na 6,000 Other Current liabilities 440,000 120,000 3,130,000 1,226,000 Required: Prepare a consolidated statement of financial position as at 31 December 2011