On october 1, 2021 Patitu Ltd acquired the following non-current investments:

1. 3,000,000 equity shares in Sanawari Ltd by an exchange of one share in Patitu Ltd for every two shares in Sanawari Ltd plus TZS 1/= per acquired Sanawari Ltd share in cash. the market price of each Patitu Ltd Share at the date of acquisition was TZS 6/=.
2. 30% of the equity shares of Kijenge Ltd at a cost of TZS 7.50 per share in cash.
3. only the cash consideration of the above investments has been recorded by Patitu Ltd.
4. The summerised draft statement of financial position of the three companies at september 30, 2022 are:

	Patitu Ltd TZS'000	Sanawari Ltd TZS'000	Kijenge Ltd TZS'000
Assets
Non current assets
Property, Plant and Equipment	18,400	10,400	18,000
Investment in Sanawari Ltd and Kijenge Ltd	12,000	0	0
Available for sale investments	6,500	0	0
Total Non current assets	36,900	10,400	18,000
Current assets
Inventory	6,900	6,200	3,600
Trade receivables	3,200	1,500	2,400
Total current assets	10,100	7,700	6,000
Total assets	47,000	18,100	24,000
Equity and Liabilities
Equity shares of TZS 1/= each	10,000	4,000	4,000
Retained earnings at September 30,2021 for year ended September 30,2022	16,000 8,000	6,500 2,400	11,000 5,000
Total Equity	34,000	12,900	20,000
Non current liabilities
7% Loan notes	5,000	1,000	1,000
Current Liabilities	8,000	4,200	3,000
Total Liabilities	13,000	5,200	4,000
Total Equity and Liabilities	47,000	18,100	24,000

The following information is relevant

(i) At the end of aquisiton date the fair value of Sanawari Ltd's assets were equal to their carrying amounts with the exception of Sanawari Ltd's land which had a fair value of TZS 500,000/=below its carrying amount; it was written down by this amount shortly after acquisition and has not changed in value since then.

(ii) On October 1, 2021, Patitu Ltd sold an item of plant to Sanawari Ltd at its agreed fair value of TZS 2,500,000/=. Its carrying amount prior to the sale was TZS 2,000,000/=. The estimated remaining life of the plant at the date of sale was five years (straight-line depreciation). (iii) During the year ended September 30, 2022 Sanawari Ltd sold goods to Patitu Ltd for TZS 2,700,000/=. Sanawari Ltd had marked up these goods by 50% on cost. Patitu Ltd had a third of the goods still in its inventory at September 30, 2022. There were no intra-group payables/receivables at September 30, 2022. (iv) Impairment tests on September 30, 2022 concluded that the value of the investment in Kijenge Ltd was not impaired, but consolidated goodwill was impaired by TZS 900,000/=. (v) The available-for-sale investments are included in Patitu Ltds statement of financial position (above) at their fair value on October 1, 2021, but they have a fair value of TZS 9,000,000/= at September 30, 2022. (vi) No dividends were paid during the year by any of the companies. Required: (a) Prepare the consolidated statement of financial position for Patitu Ltd as at September 30, 2022. (b) A financial assistant has observed that the fair value exercise means that a subsidiarys net assets are included at acquisition at their fair (current) values in the consolidated statement of financial position. The assistant believes that it is inconsistent to aggregate the subsidiarys net assets with those of the parent because most of the parents assets are carried at historical cost. Required: Comment on the assistants observation and explain why the net assets of acquired subsidiaries are consolidated at acquisition at their fair values.