On $1$ April $2022,$ P Ltd acquired $60\%$ of the $4$ million ordinary shares of S Ltd in a share exchange of two shares in P Ltd for three shares in S Ltd$.$ The issue of shares has not yet been recorded by P Ltd$.$ At the date of acquisition, shares in P Ltd had a market value of $$6$ each.

Below are the summarised draft financial statements of both companies.

Statements of Profit or Loss for the year ended $30$ September $2022$

P Ltd S Ltd

$$\text{'}000$  $$\text{'}000$ 

Revenue $85,00042,000$ 

Cost of Sales $(63,000)(32,000)$

Gross Profit $22,00010,000$ 

Distribution Cost $(2,000)(2,000)$ 

Administrative Expenses $(6,000)(3,200)$ 

Finance Cost $(300)(400)$

Profit Before Tax $13,7004,400$ 

Income Tax Expense $(4,700)(1,400)$

Profit for the Year $9,0003,000$ 

Statements of Financial Position as at $30$ September $2022$  P Ltd S Ltd

ASSETS $$\text{'}000$  $$\text{'}000$ 

Non$-$Current Assets

Property, Plant and Equipment $40,60012,600$ 

Current Assets $16,0006,600$

TOTAL ASSETS $56,60019,200$

EQUITY AND LIABILITIES

Ordinary shares $$110,0004,000$ 

Retained Earnings $35,4006,500$

TOTAL EQUITY $45,40010,500$

Non$-$Current Liabilities

$10\%$ Loan Notes $3,0004,000$ 

Current Liabilities $8,2004,700$

TOTAL EQUITY AND LIABILITIES $56,60019200$

The following information is relevant:

$($i$)$ At the date of acquisition, the fair values of S Ltd$\text{'}$s assets were equal to their carrying amounts with the exception of an item of plant, which had a fair value of $$2$ million in excess of its carrying amount. It had a remaining life of five years at that date $($straight$-$line depreciation is used$).$ S Ltd has not adjusted the carrying amount of its plant as a result of the fair value exercise.

$($ii$)$ Sales from S Ltd to P Ltd in the post$-$acquisition period were $$8$ million. S Ltd made a markup on cost of $40\%$ on these sales. P Ltd had sold $$5\mathrm{.}2$ million $($at cost$)$ as at $30$ September $2022.$

$($iii$)$ Other than where indicated, profit or loss items are deemed to accrue evenly on a time basis.

$($iv$)$ S Ltd$\text{'}$s trade receivables at $30$ September $2022$ include $$600,000$ due from P Ltd which did not agree with P Ltd$\text{'}$s corresponding trade payable. This was due to cash in transit of $$200,000$ from P Ltd to S Ltd$.$ Both companies have positive bank balances.

$($v$)$ P Ltd has a policy of accounting for any non$-$controlling interest at fair value. The fair value of the non$-$controlling interest in S Ltd at the date of acquisition was estimated to be $$5\mathrm{.}9$ million. Consolidated goodwill was not impaired at $30$ September $2022.$ 

Required:

a$)$ Prepare the consolidated statement of profit or loss for P Ltd for the year ended $30$ September $2022.(15$ marks$)$

b$)$ Prepare the consolidated statement of financial position for P Ltd as at $30$ September $2022.$