Layout References Revision 2020(3) (1) (4) Protected View - Saved to this PC - Mailings Review View Help ernet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Search Enable Editing QUESTION 1 The financial statements of Q Ltd and P Ltd for the year to 31 December 2015 are shown below: Statement of comprehensive income for the year to 31 December 2015 Q Ltd P Ltd 000 000 Sales revenue 70,000 40,000 Cost of sales 26,000 13,000 Gross profit 44,000 27,000 Operating expenses 2,500 800 Operating profit 41,500 26,200 Dividends received from P Ltd 6,500 Profit before tax 48,000 26,200 Taxation 3,200 700 Profit for the year 44,800 25,500 Layout References Revision 2020(3) (1) (4) Protected View - Saved to this PC Mailings Review View Help met can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Search Statements of financial position as at 31 December 2015 Enable Editing 000 Q Ltd P Ltd 000 000 000 Assets Non-current assets Property, plant and equipment 48,000 64,000 Investment in P Ltd 50,000 98,000 Current assets Inventories 5,000 1,200 Trade receivables 7,000 1,800 Cash at bank 2,000 14,000 1,000 4,000 Total assets 112,000 68,000 Layout References Mailings Review View Help et can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Search Enable Editing Q Ltd P Ltd 000 000 000 000 Equity Ordinary share capital 67,000 30,000 Retained earnings 9,000 4,600 76,000 34,600 Non-current liabilities 10% loan notes 13,000 89,000 7,000 41,600 Current liabilities Trade payables 22,100 25,800 Taxation 900 23,000 600 26,400 112,000 68,000 n Layout References Revision 2020(3) (1) (4) - Protected View - Saved to this PC Mailings Review View Help nternet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Search Enable Editing The following information is also available: 1. On 1 January 2011, Q Ltd paid 50,000,000 to acquire 80% of the ordinary shares o P Ltd. On that date, the retained earnings of P Ltd were 5,400,000. 2. The fair value of the non-current assets of P Ltd on 1 January 2011 exceeded their carrying amount by 1,000,000. This valuation has not been reflected in the books of P Ltd. 3. Goodwill has suffered impairment losses of 25% by 31 December 2014 and there was a further 10% impairment loss during the year to 31 December 2015. 4. Q Ltd sells goods to P Ltd at cost plus 20%. During the year to 31 December 2015, these sales totalled 5,000,000, of which 800,000 was still owing to Q Ltd at the end of the year. The inventory of P Ltd at 31 December 2015 includes goods bought from Q Ltd for 1,200,000. 5. Any depreciation consequences of the fair value adjustment may be ignored. Required: (a) Prepare a consolidated statement of comprehensive income for the year to 31 December 2015. (b) Prepare a consolidated statement of financial position as at 31 December 2015