P Ltd acquired 70% of S Ltd three years ago, when S Ltd.s retained earnings were GHS430,000.

The financial statements of each company for the year ended 31 March 2017 are as follows:

Statements of financial position as at 31 March 2017

P Ltd S Ltd

GHS000 GHS000

Non-current assets

Property, plant and equipment 900 400

Investment in S Ltd 700

Current assets 300 600

1,900 1,000

Share capital (GHS1) 200 150

Other components of equity 50

Retained earnings 1,350 700

1,600 850

Non-current liabilities 100 90

Current liabilities 200 60

1,900 1,000

Statements of profit or loss for the year ended 31 March 2017

P Ltd S Ltd

GHS000 GHS000

Revenue 1,000 260

Cost of sales (750) (80)

Gross profit 250 180

Operating expenses (60) (35)

Profit from operations 190 145

Finance costs (25) (15)

Investment income 20

Profit before tax 180 130

Tax (100) (30)

Profit for the year 85 100

You are provided with the following additional information:

1. S Ltd had plant in its statement of financial position at the date of acquisition with a carrying amount of GHS100,000 but a fair value of GHS120,000. The plant had a remaining life of 10 years at acquisition. Depreciation is charged to cost of sales.
2. The P Ltd group values the non-controlling interests at fair value. The fair value of the non-controlling interests at the date of acquisition was GHS250,000. Goodwill has been impaired by a total of 30% of its value at the reporting date, of which one-third related to the current year.
3. At the start of the year P Ltd transferred a machine to S Ltd for GHS15,000. The asset had a remaining useful economic life of 3 years at the date of transfer. It had a carrying amount of GHS12,000 in the books of P Ltd at the date of transfer.
4. During the year S Ltd sold some goods to P Ltd for GHS60,000at a mark-up of 20%. 40% of the goods remained unsold at the year-end. At the year-end, S Ltds books showed a receivables balance of GHS6,000 as being due from P Ltd. This disagreed with the payables balance of GHS1,000 in P Ltds books due to P Ltd having sent a cheque to S Ltd shortly before the year end which S Ltd had not yet received.
5. S Ltd paid a dividend of GHS20,000 on 1 March 2017.

Required:

Prepare the consolidated statement of financial position and consolidated statement of profit or loss for the year ended 31 March 2017.