On 1 January 2020, Yunza Co acquired 75% of Lato Co's equity shares by means of a share exchange of two shares in Yunza Co for every three Lato Co shares acquired. On that date, further consideration was also issued to the shareholders of Lato Co in the form of a K100 8% loan note for every 100 shares acquired in Lato Co. None of the purchase consideration, nor the outstanding interest on the loan notes at 31 March 2020, has yet been recorded by Yunza Co. At the date of acquisition, the share price of Yunza Co and Lato Co is K3-20 and K1-80 respectively. The summarised statements of financial position of the two companies as at 31 March 2020 are: Lato Co Yunza co K'000 K'000 Assets Non-current assets 31,500 Property, plant and equipment (note () Investment in Zed Coat 1 April 2019 (note (iv)) 75,200 4,500 79,700 31,500 Current assets 19,400 Inventory (note (iii) Trade receivables (note (iii) 18,800 12,500 600 14,700 1,200 Bank 35,300 31,900 Total assets 115,000 63,400 Equity and liabilities Equity Equity shares of K1 each Retained earnings - at 1 April 2019 - for year ended 31 March 2020 50,000 20,000 16,000 20,000 19,000 8,000 86,000 47,000 Non-current liabilities 8% loan notes Current liabilities (note (i)) nil 5.000 24,000 16,400 29.000 16,400 Total equity and liabilities 115,000 63,400 The following information is relevant: (0) At the date of acquisition, the fair values of Lato Co's assets were equal to their carrying amounts. However, Lato Co operates a mine which requires to be decommissioned in five years' time. No provision has been made for these decommissioning costs by Lato Co. The present value (discounted at 8%) of the decommissioning is estimated at K4m and will be paid five years from the date acquisition (the end of the mine's life) (ii) Yunza Co's policy is to value the non-controlling interest at fair value at the date of acquisition. Lato Co's share price at that date can be deemed to be representative of the fair value of the shares held by the non-controlling interest. (iii) The inventory of Lato Co includes goods bought from Yunza Co for K2.1m. Yunza Co applies a consistent mark-up on cost of 40% when arriving at its selling prices. On 28 March 2020, Yunza Co despatched goods to Lato Co with a selling price of K700,000. These were not received by Lato Co until after the year end and so have not been included in the above inventory at 31 March 2020. At 31 March 2020, Yunza Co's records showed a receivable due from Lato Co of K3m, this differed to the equivalent payable in Lato Co's records due to the goods in transit. 1 The intra-group reconciliation should be achieved by assuming that Lato Co had received the goods in transit before the year end. (iv) The investment in Zed Co represents 30% of its voting share capital and Yunza Co uses equity accounting to account for this investment. Zed Co's profit for the year ended 31 March 2020 was K6m and Zed Co paid total dividends during the year ended 31 March 2020 of K2m. Yunza Co has recorded its share of the dividend received from Zed Co in investment income (and cash). (v) All profits and losses accrued evenly throughout the year. (vi) There were no impairment losses within the group for the year ended 31 March 2020. Required: Prepare the consolidated statement of financial position for Yunza Co as at 31 March 2020. On 1 January 2020, Yunza Co acquired 75% of Lato Co's equity shares by means of a share exchange of two shares in Yunza Co for every three Lato Co shares acquired. On that date, further consideration was also issued to the shareholders of Lato Co in the form of a K100 8% loan note for every 100 shares acquired in Lato Co. None of the purchase consideration, nor the outstanding interest on the loan notes at 31 March 2020, has yet been recorded by Yunza Co. At the date of acquisition, the share price of Yunza Co and Lato Co is K3-20 and K1-80 respectively. The summarised statements of financial position of the two companies as at 31 March 2020 are: Lato Co Yunza co K'000 K'000 Assets Non-current assets 31,500 Property, plant and equipment (note () Investment in Zed Coat 1 April 2019 (note (iv)) 75,200 4,500 79,700 31,500 Current assets 19,400 Inventory (note (iii) Trade receivables (note (iii) 18,800 12,500 600 14,700 1,200 Bank 35,300 31,900 Total assets 115,000 63,400 Equity and liabilities Equity Equity shares of K1 each Retained earnings - at 1 April 2019 - for year ended 31 March 2020 50,000 20,000 16,000 20,000 19,000 8,000 86,000 47,000 Non-current liabilities 8% loan notes Current liabilities (note (i)) nil 5.000 24,000 16,400 29.000 16,400 Total equity and liabilities 115,000 63,400 The following information is relevant: (0) At the date of acquisition, the fair values of Lato Co's assets were equal to their carrying amounts. However, Lato Co operates a mine which requires to be decommissioned in five years' time. No provision has been made for these decommissioning costs by Lato Co. The present value (discounted at 8%) of the decommissioning is estimated at K4m and will be paid five years from the date acquisition (the end of the mine's life) (ii) Yunza Co's policy is to value the non-controlling interest at fair value at the date of acquisition. Lato Co's share price at that date can be deemed to be representative of the fair value of the shares held by the non-controlling interest. (iii) The inventory of Lato Co includes goods bought from Yunza Co for K2.1m. Yunza Co applies a consistent mark-up on cost of 40% when arriving at its selling prices. On 28 March 2020, Yunza Co despatched goods to Lato Co with a selling price of K700,000. These were not received by Lato Co until after the year end and so have not been included in the above inventory at 31 March 2020. At 31 March 2020, Yunza Co's records showed a receivable due from Lato Co of K3m, this differed to the equivalent payable in Lato Co's records due to the goods in transit. 1 The intra-group reconciliation should be achieved by assuming that Lato Co had received the goods in transit before the year end. (iv) The investment in Zed Co represents 30% of its voting share capital and Yunza Co uses equity accounting to account for this investment. Zed Co's profit for the year ended 31 March 2020 was K6m and Zed Co paid total dividends during the year ended 31 March 2020 of K2m. Yunza Co has recorded its share of the dividend received from Zed Co in investment income (and cash). (v) All profits and losses accrued evenly throughout the year. (vi) There were no impairment losses within the group for the year ended 31 March 2020. Required: Prepare the consolidated statement of financial position for Yunza Co as at 31 March 2020