Papilla acquired 70% of Satago three years ago, when Satago's retained earnings were $430,000. The financial statements of each company for the year ended 31 March 20X7 are as follows: Statements of financial position as at 31 March 20X7 P 5000 5000 Non-current assets Property, plant and equipment Investment in S at cost Current assets 900 400 700 300 600 1.900 1,000 Share capital ($1) 200 150 Share premium 50 Retained eamings 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 20X7 P S $000 $000 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 185 130 Income tax expense (100) (30) Profit for the year 85 100 You are provided with the following additional information: (i) Satago had plant in its statement of financial position at the date of acquisition with a carrying amount of $100,000 but a fair value of $120,000. The plant had a remaining life of 10 years at acquisition. Depreciation is charged to cost of sales The Papilla group values the non-controlling interest at fair value. The fair value of the non-controlling interest at the date of acquisition was $250,000. 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. At the start of the year Papilla transferred a machine to Salago for $15,000. The asset had a remaining useful life of 3 years at the date of transfer. It had a carrying amount of $12,000 in the books of Papilla at the date of transfer (iv) During the year Satago sold some goods to Papilla for $60,000 at a mark-up of 20%. 40% of the goods remained unsold at the year- end. At the year-erid, Satago's books showed a receivables balance of $6,000 as being due from Papilla. This disagreed with the payables balance of $1,000 in Papilla's books due to Papilla having sent a cheque to Satago shortly before the year end which Satago had not yet received. (v) Satago paid a dividend of $20,000 on 1 March 20x7 Required: Prepare the consolidated statement of financial position and consolidated statement of profit or loss for the year ended 31 March