P Ltd gained control of S Ltd by acquiring all its share capital on 1 Jan 2010. The FV of the consideration paid was measured at $114,000. The statement of financial position of S Ltd at that date showed: RE Share capital Asset revaluation reserve Tax liability $60,000 40,000 20,000 15,000 135,000 Land Plant and machinery Accumulated depreciation Inventory $20,000 120,000 (20,000) 15,000 135,000 At 1 Jan 2010, the recorded amounts of S Ltd's assets and liabilities were equal to their fair values except as follows: Carrying amount FV Inventory $15,000 $18,000 Plant and machinery 100,000 102,000 Of the inventory on hand at 1 Jan 2010, 30% was sold by 31 Dec 2010, 30% was sold by 31 Dec 2011, and the remaining 40% was sold by 31 Dec 2012. The plant and machinery have a further 5-year life and are depreciated on a straight-line basis. At 1 Jan 2010, S Ltd was involved in a court case with an entity that was claiming damages from it. S Ltd had not recognized any liability in relation to the possible damages. P Ltd measured the fair value of the liability at $5,000. In March 2012, S Ltd lost the court case and a payment of $7,000 was made on 1 April 2012. Tax rate is 30%. On June 2011, P Ltd sold inventory to S Ltd for $15,000. This inventory had previously cost P Ltd $8,000, and 80% of this inventory remained unsold by S Ltd at the end of 2011. At the end of 2012, half of this remaining inventory was still on hand. On 1 July 2010, S Lid sold an item of plant to PLtd for $100,000. The carrying amount of this plant on S Ltd accounts is $80,000. S Ltd used the straight-line method over 10 years and P Ltd depreciated this plant at 10% p.a. on the diminishing value. The financial information for the year ended 31 Dec 2012 for the entities within the group was as follows: 71,000 (30,000) (26,000) Sales COGS Expenses Gain Profit before tax Income tax expense Profit for the year Retained earnings (1/1/12) Retained earnings (31/12/12) Share capital Asset revaluation reserve (1/1/12) Gains on plant revaluation Asset revaluation reserve (31/12/12) Total equity Tax liability Other liabilities Total liabilities 650,000 (400,000) (200,000) 50,000 100,000 (20,000) 80,000 103,000 183.000 445,000 15,000 15,000 30,000 15,000 (5,000) 10,000 40,000 50.000 60,000 20,000 4,000 24,000 658,000 134,000 10,000 32,000 42,000 1,000 3,000 4,000. Total liability and equity 700,000 138,000 Land Plant and machinery Accumulated depreciation Inventory Shares in S Ltd Total assets 591,000 (20,000) 15,000 114,000 700,000 20,000 120,000 (25,000) 23,000 138.000 Note: Expenses includes depreciation expense, settlement of lawsuits and all the other expenses other than COGS. Required: Determine the amounts that are to be reported in the consolidated financial statements of P Ltd for the year ended 31 Dec 2012, as indicated by QI to Q20. PLTD Consolidated Statement of Comprehensive Income for financial year ended 31 Dec 2012 Sales Cost of inventory sold Expenses Gain Profit before tax Income tax expense Profit for the period Other comprehensive income: Gain on plant revaluation Total comprehensive income for the year XXX OS XXX 06 XXX Assets PLTD Consolidated Statement of Changes in Equity for financial year ended 31 Dec 2012 Revaluation Share Capital Reserve Total Balance on 1 Jan 2012 07 Q8 Total comprehensive income 010 Balance on 31 Dec 2012 RE XXX XXX 09 011 PLTD Consolidated Statement of Financial Position as at 31 Dec 2012 Equity and Liability Equity Share capital Q12 Assets Revaluation Reserve Retained earnings Q13 Total equity XXX Non-current liabilities Tax liabilities 014 Other liabilities XXX Total non-current liabilities XXX Total equity and liabilities Assets Non-current assets Land xxx Plant and Machinery Q15 Accumulated depreciation 016 Shares in S Ltd Q17 Goodwill Q18 Total non-current assets XXX Current assets Inventory Total current assets Total assets 020 Q19 XXX P Ltd gained control of S Ltd by acquiring all its share capital on 1 Jan 2010. The FV of the consideration paid was measured at $114,000. The statement of financial position of S Ltd at that date showed: RE Share capital Asset revaluation reserve Tax liability $60,000 40,000 20,000 15,000 135,000 Land Plant and machinery Accumulated depreciation Inventory $20,000 120,000 (20,000) 15,000 135,000 At 1 Jan 2010, the recorded amounts of S Ltd's assets and liabilities were equal to their fair values except as follows: Carrying amount FV Inventory $15,000 $18,000 Plant and machinery 100,000 102,000 Of the inventory on hand at 1 Jan 2010, 30% was sold by 31 Dec 2010, 30% was sold by 31 Dec 2011, and the remaining 40% was sold by 31 Dec 2012. The plant and machinery have a further 5-year life and are depreciated on a straight-line basis. At 1 Jan 2010, S Ltd was involved in a court case with an entity that was claiming damages from it. S Ltd had not recognized any liability in relation to the possible damages. P Ltd measured the fair value of the liability at $5,000. In March 2012, S Ltd lost the court case and a payment of $7,000 was made on 1 April 2012. Tax rate is 30%. On June 2011, P Ltd sold inventory to S Ltd for $15,000. This inventory had previously cost P Ltd $8,000, and 80% of this inventory remained unsold by S Ltd at the end of 2011. At the end of 2012, half of this remaining inventory was still on hand. On 1 July 2010, S Lid sold an item of plant to PLtd for $100,000. The carrying amount of this plant on S Ltd accounts is $80,000. S Ltd used the straight-line method over 10 years and P Ltd depreciated this plant at 10% p.a. on the diminishing value. The financial information for the year ended 31 Dec 2012 for the entities within the group was as follows: 71,000 (30,000) (26,000) Sales COGS Expenses Gain Profit before tax Income tax expense Profit for the year Retained earnings (1/1/12) Retained earnings (31/12/12) Share capital Asset revaluation reserve (1/1/12) Gains on plant revaluation Asset revaluation reserve (31/12/12) Total equity Tax liability Other liabilities Total liabilities 650,000 (400,000) (200,000) 50,000 100,000 (20,000) 80,000 103,000 183.000 445,000 15,000 15,000 30,000 15,000 (5,000) 10,000 40,000 50.000 60,000 20,000 4,000 24,000 658,000 134,000 10,000 32,000 42,000 1,000 3,000 4,000. Total liability and equity 700,000 138,000 Land Plant and machinery Accumulated depreciation Inventory Shares in S Ltd Total assets 591,000 (20,000) 15,000 114,000 700,000 20,000 120,000 (25,000) 23,000 138.000 Note: Expenses includes depreciation expense, settlement of lawsuits and all the other expenses other than COGS. Required: Determine the amounts that are to be reported in the consolidated financial statements of P Ltd for the year ended 31 Dec 2012, as indicated by QI to Q20. PLTD Consolidated Statement of Comprehensive Income for financial year ended 31 Dec 2012 Sales Cost of inventory sold Expenses Gain Profit before tax Income tax expense Profit for the period Other comprehensive income: Gain on plant revaluation Total comprehensive income for the year XXX OS XXX 06 XXX Assets PLTD Consolidated Statement of Changes in Equity for financial year ended 31 Dec 2012 Revaluation Share Capital Reserve Total Balance on 1 Jan 2012 07 Q8 Total comprehensive income 010 Balance on 31 Dec 2012 RE XXX XXX 09 011 PLTD Consolidated Statement of Financial Position as at 31 Dec 2012 Equity and Liability Equity Share capital Q12 Assets Revaluation Reserve Retained earnings Q13 Total equity XXX Non-current liabilities Tax liabilities 014 Other liabilities XXX Total non-current liabilities XXX Total equity and liabilities Assets Non-current assets Land xxx Plant and Machinery Q15 Accumulated depreciation 016 Shares in S Ltd Q17 Goodwill Q18 Total non-current assets XXX Current assets Inventory Total current assets Total assets 020 Q19 XXX