P Co$.$ has just acquired $60$ per cent of S Co on $1$ January $20$X$9.$

Rather than pay cash for S Co$.\text{'}$s shares, P Co$.$ has funded the acquisition by issuing $4\mathrm{.}5$m of its own shares to S Co$.\text{'}$s shareholders.

S Co$.\text{'}$s shares have a market value of Euro $3.$ The costs of the share issue amounted to Euro $500,000$ and P Co$.$ paid a total of Euro $600,000$ to lawyers and accountants to carry out the combination.

At the date of acquisition the retained earnings of S Co$.$ were Euro $200$ and there is no change in the reserves.

The following are the Statements of Financial Position of P Co$.$ and S Co$.$ at $31$ December $20$X$9.$

You are required to prepare workings for consolidation and the consolidated Statement of financial position at the date of acquistion.

P Co$.$ S Co$.$

$"000""000"$

Assets Euros Euros

Current assets

Cash $6900,0050,00$

Accounts receivable $200,00150,00$

Inventories $4290,00690,00$

Non Current assets

Property, plant and equipment $5147,102000,00$

Investment in S$.$Co $13500,00-$

Capitalized legal cost $500,00$

$30537,102890,00$

Liabilities

Current liabilities

Accounts payable $1369,00290,00$

Accrued expenses $1588,10310,00$

Non Current liabilities

Long term loans $11698,001000,00$

Deferred consideration for acquisition of subsidiary $($see workings$)-$

Equity

Share Capital $4860,00450,00$

Share premium account $9000,00-$

Reserves $1136,00350,00$

Retained earnings $886,00490,00$

$30537,102890,00$

$--$

P Co$.$

Consolidated Statement of Financial Position As of $31$ Dec $20$x$9$

Euros Euros

$"000""000"$

Assets

Current assets

Cash $(400+50)6950,006577,00$

Accounts receivable $(200+150)350,00466,00$

Inventories $(1,690+190)4980,004668,00$

Non Current assets

Property, plant and equipment

$(5,580+2,500+890)7147,105778,00$

Investment in S Co$.-$

Goodwill $($see workings$)12900,00-$

Capitalized legal cost $400,00-$

$32727,1017489,00$

Liabilities

Current liabilities

Accounts payable $(1,369+290)1659,001070,00$

Accrued expenses $(429+310)1898,101658,00$

Non Current liabilities

Long term loans $(2,450+1,000)12698,0012577,00$

Deferred consideration for acquisition of subsidiary $($see workings$)-$

Equity

Share Capital $4860,00360,00$

Share premium account $9000,00-$

Reserves $($see workings$)1136,001136,00$

Retained earnings $($see workings$)960,00688,00$

$15956,002184,00$

Non$-$controlling interest $($see workings$)516,00-$

$32727,1017489,00$

$--$

Assume that P Co$.$ sold all its investment in S Co$.$ for Euro $14$ million Euro on $31$ December $20$X$9.$ In this case and prepare a consolidated Statement of Cashflows