P Ltd acquired 75% of S Ltd on 1.10.2019 giving 2 new shares (market value $2) in P Ltd for every 5 acquired shares in S ltd.

Additionally, P Ltd issued to shareholders of S Ltd $100 10% loan note for every 1000 shares acquired in S Ltd.

The purchase consideration was not recorded in P Ltd accounts.

Statement of financial position as at 31.03.2020

P Ltd S Ltd

$000 $000

Assets

Non-current assets

Property, plant & equipment 48000 25000

Equity investments (note 1) 7500 3500

55500 28500

Current assets

Inventory (note 2) 17500 8500

Trade receivables (note 3) 15000 10000

Bank 5000 0

37500 18500

Total assets 93000 47000

Equity and liabilities

Equity

Equity shares $1 39000 21000

Retained earnings-1.4.2019 20000 (5000)

Retained earnings for Y/E 31.3.2020 8000 7000

67000 23000

Non-current liabilities

10% loan notes 10000 0

Current liabilities

Trade payables (note 3) 16000 14000

Bank overdraft 0 10000

16000 24000

Total equity and liabilities 93000 47000

Notes

1. According to a draft statement of profit and loss prepared at the acquisition date, S Ltd made a net loss of $2 million for the year and P Ltd accepted it as the basis for calculating the pre-acquisition and the post-acquisition share of the profit of S Ltd for the year ended 31.03.2020.

At the acquisition date, P Ltd made a fair value evaluation of S Ltd net assets and found that a plant, with a remaining useful life of 3 years, had a fair value $3 million below its carrying amount.

P Ltd value NCI at fair value at acquisition date and S Ltd share price of $1.25 is considered to be fair value.

2. P Ltd made sales to S Ltd $4.5 million per month since acquisition with a 20% mark up on cost. S Ltd had one months supply of these goods in stock at 31.03.2020. P Ltd normal mark up on cost is 30%.

3. S Ltd current balance with P Ltd at 31.03.2020 was $3 million and did not agree with P Ltd equivalent receivable due to a payment of $1 million made by S Ltd 0n 28.03.2020 which was received by P Ltd on 3.4.2020.

4. The equity investments of P Ltd and S Ltd are carried at their fair values as at 1.4.2019. As at 31.3.2020 these had fair value of $7 million and $4 million respectively.

5. There were no impairment losses during the year.

Required

Prepare the consolidated statement of financial position for P Ltd as at 31.3.2020.