On 1 July 2014, Robert plc acquired 80% of the ordinary share capital of Plant Limited by way of a share exchange. Robert plc issued five of its own ordinary shares for every two ordinary shares acquired in Plant Limited. The market value of one of Robert plc's ordinary shares on the date of acquisition was $3. The share issue has not yet been recognised in Robert plc's financial statements. The financial statements of Robert plc and Plant Limited at the reporting date are shown below. Statements of Profit or Loss and Other Comprehensive Income for the Year Ended 31 December 2014 Robert plc Plant Limited E'000 E'000 Revenue 1,200 1,000 Cost of sales (650) 660 Gross profit 550 340 Operating expenses (120) (88) Debenture interest (12) Profit before tax 430 240 Taxation (100) (40) Profit for the year 330 200Statements of Financial Position as at 31 December 2014 Robert plc Plant Limited Non-current assets E'000 E'000 Property, plant and equipment 620 660 Investments 20 10 640 670 Current assets Inventory 240 280 Trade receivables 170 210 Bank 20 40 430 530 Total assets 1,070 1.200 Equity El ordinary shares 400 150 Retained earnings 410 700 810 850 Non-current liabilities 8% debentures 150 Current liabilities Trade payables 210 155 Taxation 50 45 260 Total equity and liabilities 200 1,070 1,200Additional Information: (i) On 1 July 2014, the fair values of Plant Limited's assets and liabilities were equal to their carrying values, with the exception of land which had a fair value of $125,000 in excess of its carrying value. (ii) In December 2014, Robert plc sold inventory to Plant Limited for $100,000. This gave a mark-up on cost of 25% to Robert plc. At the reporting date, half of these goods remained in the inventory of Plant Limited. (iii) The inter-company current accounts of Robert plc and Plant Limited disagreed due to a cash remittance of $20,000 by Plant Limited on 26 December 2014 not being received until after the reporting date by Robert plc. Before adjusting for this, Plant Limited's debit balance in Robert plc's financial statements was $56,000. (iv) It is group policy to value non-controlling interests using the full goodwill method. The fair value of the non-controlling interests in Plant Limited on 1 July 2014 was $230,000. (v) The income and expenses of Robert plc and Plant Limited are earned and incurred evenly throughout the financial year. Requirement Prepare Robert plc's consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2014 and the consolidated statement of financial position as at that date
