On 1 January 2015, Paul acquired 75% of Saul’s equity shares by means of an immediate share exchange of two shares in Paul for five shares in Saul. The fair value of Paul and Saul’s shares on 1 January 2015 were $4.00 and $3.00, respectively. In addition to the share exchange, Paul will make a cash payment of $1.32 per acquired share, deferred until 1 January 2016. Paul has not recorded any of the consideration for Saul in its financial statements. Paul’s cost of capital is 10% per annum.

The summarized statement of financial position of the two companies as at 30 June 2015 are:

ASSETS
Non-current assets
Property, plant, and equipment	55,000		28,600
Financial asset equity investments	11,500		6,000
Total non-current assets 66,500			34,600
Current Assets
Inventory	17,000		15,400
Trade receivables	14,300		10,500
Bank	2,200		1,600
Total current assets 33,500			27,500
TOTAL ASSETS	100,000		62,100
EQUITY AND LIABILITIES
Equity and liabilities
Equity
Equity shares of $1 each	20,000		20,000
Other component of equity	4,000		nil
Retained earnings – at July 2014	26,200		14,000
For year ended 30 June 2015	24,000		10,000
Total Equity and liabilities 74,200			44,000
Current liabilities	25,800		18,100
TOTAL EQUITY AND LIABILITIES	100,000		62,100

The following additional Information is relevant:

(i) Saul’s business is seasonal and 60% of its annual profit is made in the period 1 January to 30 June each year.

(ii) At the date of acquisition, the fair value of Saul’s net assets was equal to their carrying amounts with the following exception: An item of plant had a fair value of $2 million below its carrying value. At the date of acquisition, it had a remaining life of two years.

The fair value of Saul’s investment was $7 million

Saul owned the rights to a popular mobile (cell) phone game. At the date of acquisition, a specialist valuer estimated that the rights worth $12 million and had an estimated remaining life of 5 years.

(iii) Following an impairment review, consolidated goodwill is to be written down by $3 million as at 30 June 2015.

(iv) Paul sells goods to Saul at cost plus 30%. Saul had $1.8 million of goods in its inventory at 30 June 2015 which had been supplied by Paul. In addition, on 28 June 2015, Paul processed the sale of $800,000 of goods to Saul, which Saul did not account for until their receipt on 2 July 2015. The in-transit goods reconciliation should be achieved by assuming the transaction had been recorded in the books of Saul before the year end. At 30 June 2015, Paul had a trade receivable balance of $2.4 million from Saul which differed to the equivalent balance in Saul’s books due to the sale made on 28 June 2015.

(v) On 30 June 2015, the fair values of the financial asset equity investments of Paul and Saul were $13.2 million and $7.9 million, respectively.

(vi) Paul’s policy is to value the non-controlling interest at fair value at the date of acquisition. For this purpose, Saul’s share price at that date is representative of the fair value of the shares held by the non-controlling interest.

REQUIRED: PREPARE THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR PAUL AS AT 30 JUNE 2015