Jio 8:58 PM Question 3 (30 marks) (A) The following are the summarised statements of financial position for Handa Pic and Akeyo Ltd at 31 March 2018, the end of their accounting years Statements of financial position at 31 March 2018 Non sucent assets Property, plant and equipment Investment Handa Ple Akayo Ltd Em 4,700 500 80m ordinary shares in Ayo Ltd 400 100m 8% debentures in Akayo L 100 Current assets Inventory 75 Receivables 100 Cash and cash equivalent 50 25 5425 595 Equity and Ordinary 1 shares 1,000 100 Share premium account 1,100 200 Retained earnings 2675 145 Nonsument be 8% Debentures 400 125 Querenties Payables Owed to Akey L Bank overdraft 200 25 32 10 0 5425 595 The following information is also available 1) On 1 April 2017 Handa Pic acquired share capital in Akueyo Limited. At that date the retained earnings of Akeyo Limited amounted to 45m. Each ordinary share in Akey Ltd carries one vote and there are no voting rights other than those attached to the ordinary shares Akeyo Ltd has not issued any shares since its acquisition by Handa Pic 25 On 1 April 2017 the fair value of Akeyo Limited's property, plant and equipment was 100m higher than book value. This is not reflected in the statement of financial position above No adjustments are necessary for depreciation during the year ended 31 March 2018 At 31 March 2018 Handa Pic's inventory includes 25m relating to goods purchased from Akeyo Ltd. These goods had cost Akey Ltd 15m . Required 00 Calculate goodwill arising on the acquisition of Akeyo Ltd at 1 April 2017 (4 marks) (1) Calculate consolidated retained earnings at 31 March 2018. (0) Calculate the non-controlling interest at 31 March 2018 (3 marks) (3 marks) (v) Prepare a consolidated statement of financial position for Handa Pic at 31 March 2018 (6 marks) (V) Explain with supporting calculations how your answers above would differ if a review at 31 March 2018 established impairment of goodwill amounting to 17m (Note that you do not need to re- produce the entire consolidated statement of financial position) (vi) with reference to IAS 38 and/or IFRS 3, explain how the business would treat non-purchased (or internally generated) goodwill in its financial statements. Is it possible at some future date for Handa Plc to revalue upwards the goodwill in (1) above? Note: Round all numbers to nearest Emillion (ie no decimal places) (3 marks) (3 marks) 37% 4