Lion Group You are the Chief Accountant for Lion Plc and the following information regarding the year ending 31st March 2022 is provided. Lion Plc is a UK resident trading company that manufactures and supply top quality metal roof sheeting to suit your individual requirements. Lion has been trading in the UK only since its establishment in year 2000. The company directors are aware that some countries in Africa still use asbestos for roofing which is hazardous to health. They have identified an opportunity to expand the operations and supply metal roofing in Kenya from April 2023. On 1st April 2021 Lion Plc acquired Zebra Ltd and Oryx Ltd which are also resident in the UK. Zebra Ltd is an online retailer for roofing tiles known as QTiles. Oryx Ltd specialises in providing roofing solutions to individuals. The directors of Lion Plc strongly believe that the acquisition of Zebra Ltd will result in the company gaining competencies and resources that it does not currently hold as well as increase the market share. Lion Plc is now required to produce Consolidated Financial Statements and you are aware that IFRS 10 - outlines the requirements for the preparation and presentation of consolidated financial statements, requiring entities to consolidate entities it controls. You have now been provided with the individual Statutory Statements of Financial Position for Lion Plc and Zebra Ltd at 31st March 2022 below: Lion Plc Zebra Ltd Oryx Ltd 000 000 000 000 000 000 Non-current assets Property, plant and equipment 20,000 10,000 7,000 Cost of investment in Zebra Ltd 21,000 Cost of investment in Oryx Ltd 4,150 45,150 10,000 7,000 Current assets Inventory 9,030 4,200 2,500 Trade receivables 2,200 1,100 1,450 Cash and cash equivalents 3,000 900 500 14,230 6,200 4,450 Total assets 59,380 16,200 11,450 Equity and liabilities Equity Ordinary share capital (1 shares) 19,000 6,000 2,000 Retained earnings 20,900 7,520 5,500 Total equity 39,900 13,520 7,500 Current liabilities Trade payables 18,780 2,080 3,550 Taxation payable 700 600 400 19,480 2,680 3,950 Total equity and liabilities 59,380 16,200 11,450 Note: The group policy is to value non-controlling interest at the proportionate share of the fair value of net assets at acquisition. The following additional information is relevant: i. On 1 April 2021 Lion Plc acquired 4,200,000 ordinary 1 shares in Zebra for 21,000,000 when the retained earnings in Zebra were 3,300,000. ii. On 1 April 2021 Lion Plc acquired 800,000 ordinary 1 shares in Oryx for 4,150,000 when the retained earnings in Oryx were 5,000,000. iii. In the year ended 31st March 2022 Lion Plc sold goods on credit to Zebra for 2,000,000. No goods remain in inventory at the year-end, but the full amount is still outstanding at the year-end. This is included in Lions trade receivables and Zebras trade payables balances in the above statements of financial position. iv. During the year ended 31st March 2022 Lion Plc sold goods on credit to Oryx for 150,000. Two-thirds of these goods remain in Oryxs inventory at year-end. Lion Plc makes a 30% mark-up on all goods sold. v. At 31 March 2022 an impairment test was conducted and it was found that the goodwill on acquisition of Zebra Ltd is impaired by 200,000 and the investment in Oryx is impaired by 90,000. YOU ARE REQUIRED TO: a) Prepare a consolidated statement of financial position for the Lion Group as at 31 March 2022.Note: The group policy is to value non-controlling interest at the proportionate share of the fair value of net assets at acquisition. (35 marks) b) Fair Value Measurement defines the fair value as: The price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Identify the relevant IFRS and briefly discuss the conceptual basis for using fair value as a method of measurement