Lanark plc ($($Lanark),$),$ a public limited company, operates in the manufacturing sector. Lanark has

investments in two other companies. The draft statements of financial position as at 31$31$ December 2023$2023$

are as follows:

Lanark Strath Clyde

$$m $$m $$m

Non−$-$current assets

Property, plant and equipment 3,8001,3001,100$3,8001,3001,100$

Investments in subsidiaries

Strath 1,510$1,510$

Clyde 3301,320−−−−−−$3301,320------$

5,6402,6201,100$5,6402,6201,100$

Current assets 1,450840310$1,450840310$

Total assets 7,0903,4601,410$7,0903,4601,410$

Equity and liabilities:

Share capital 3,9901,2001,000$3,9901,2001,000$

Retained earnings 1,5201,010366$1,5201,010366$

Revaluation reserve ($($see note vi)20−−$)20--$

Total equity 5,5302,2101,366$5,5302,2101,366$

Non−$-$current liabilities 1,10082026$1,10082026$

Current liabilities 46043018$46043018$

Total liabilities 1,5601,25044$1,5601,25044$

Total equity and liabilities 7,0903,4601,410$7,0903,4601,410$

The following information is relevant to the preparation of the group financial statements:

($($i)$)$ On 1$1$ January 2022,$2022,$ Lanark acquired 70%$70\%$ of the equity interests of Strath Ltd.$.$ The purchase

consideration comprised cash of 1,510$1,510$ million. On 1$1$ January 2022,$2022,$ the fair value of the

identifiable net assets acquired was 1,820$1,820$ million and retained earnings of Strath were 590$590$

million. The excess in fair value is due to non−$-$depreciable land.

It is the group$$s policy to measure the non−$-$controlling interest at acquisition at its proportionate

share of the fair value of the subsidiary$$s net assets.

($($ii)$)$ On 1$1$ January 2021,$2021,$ Lanark acquired 16%$16\%$ of the equity interests of Clyde Ltd for a cash

consideration of 260$260$ million and Strath acquired 80%$80\%$ of the equity interests of Clyde for a cash

consideration of 1,320$1,320$ million. At 1$1$ January 2021,$2021,$ the identifiable net assets of Clyde had a fair

value of 1,050$1,050$ million and retained earnings were 276$276$ million. The excess in fair value is due

to non−$-$depreciable land.

At 1$1$ January 2022,$2022,$ the identifiable net assets of Clyde had a fair value of 1,400$1,400$ million, retained

earnings were 340$340$ million. The excess in fair value is due to non−$-$depreciable land The fair value of the 16%$16\%$ holding of Lanark in Clyde was 290$290$ million on 1$1$ January 2022$2022$ and

330$330$ million at 31$31$ December 2023.$2023.$ The fair value of Strath$$s interest in Clyde had not changed

since acquisition.

($($iii)$)$ On 1$1$ July 2023$2023$ Lanark sold some property to Strath Ltd for 140$140$ million. The property had a

carrying amount in Lanark$$s books of 110$110$ million at the date of sale. The estimated remaining

useful life of the property was reassessed at the date of sale as twenty years.

($($iv)$)$ During 2023$2023$ Strath Ltd has invoiced 90$90$ million of sales to Lanark all at a mark−$-$up of 25%.$25\%.$ One

quarter of these goods were still in Lanark$$s inventories at the year end.

($($v)$)$ On 1$1$ January 2023,$2023,$ Lanark issued 5,0001$5,0001$ share options to each of its 1,000$1,000$ staff. The share

options are conditional on staff being employed by Lanark on 31$31$ December 2025$2025$ and the share

options cannot be exercised unless Lanark$$s share price reaches 25$25$ on 31$31$ December 2025.$2025.$

Provided the share price target is met, the share options can be exercised at any time during the

following two years i.$.$e.,$.,$ from 1$1$ January 2026$2026$ to 31$31$ December 2027.$2027.$

The unadjusted fair value of the options on 1$1$ January 2023$2023$ was 11.20$11\mathrm{.}20$: the adjusted fair value

considering the share price target was 10$10$ per share.

On 1$1$ January 2023,$2023,$ the directors estimated that 20%$20\%$ of the staff would leave and forfeit their rights to

the shares. This estimate was subsequently revised down to 15%$15\%$ on 31$31$ December 2023.$2023.$

Lanark$$s 1$1$ equity shares were quoted at 20$20$ per share on 1$1$ January 2023$2023$ and at 22$22$ on 31$31$ December

2023.$2023.$ The directors consider there is an 80%$80\%$ probability that the share price target will be met on 31$31$

December 2025.$2025.$ The directors wish to account for the share−$-$based payments in a separate equity

reserve.

($($vi)$)$ Lanark acquired a piece of land used for storage purposes in 2010.$2010.$ The land was owneroccupied and correctly accounted for as PPE ($($no depreciation).$).$ The land was revalued in 2019.$2019.$ The

fair value as at 31$31$ December 2023$2023$ has not yet been reflected in the financial statements.

Details of the land values are as follows:

Cost 1$1$ January 201010$201010$ million

Fair Value 1$1$ January 201930$201930$ million

Fair Value 31$31$ December 20238$20238$ million

Required

Prepare the group consolidated statement of financial position of Lanark in a form suitable for

publication as at 31$31$ December 2023.$2023.$

Prepare your statement in $$ millions to 2$2$ decimal places