Part B

The balance sheets of Sigma plc and Omega plc on $31$ December $2023,$ the accounting date for both companies, were as follows:

Sigma plc Assets $\text{'}000$

Tangible fixed assets $60,000$ Inventory $10,000$

Omega plc $\text{'}000$

$40,000$

$9,00010,000$

$59,000$

$-8,000-12,000$

$-20,000$

Other current assets

Liabilities

Current liabilities Quoted debentures

Net assets

$12,00082,000$

$-9,000$

$-15,000-24,000$

$58,000$

$39,000$

$3$

Shareholders' Equity

Equity share capital $(1$ shares$)$

Share premium account

Profit & loss account

Total Shareholders' Equity

$30,000$

$10,000$

$18,000$

$58,000$

$20,000$

$5,00014,00039,000$

On $31$ December $2023,$ Sigma plc purchased $100\%$ of Omega plc shares. The purchase consideration was satisfied by the issuance of $6$ new equity shares by Sigma plc for every $5$ equity shares purchased from Omega plc$.$

On $31$ December $2023,$ the market value of a Sigma plc share was $2\mathrm{.}25,$ and themarket value of an Omega plc share was $2\mathrm{.}40.$

Further relevant details regarding Omega plc$$s accounts on $31$ December $2023$ are as follows:

$$

The fixed assets had a fair value of $42\mathrm{.}5$m$.$ The inventory had a fair value of $9\mathrm{.}5$m$.$ The debentures had a market value of $12$m$.$

$$

$$ Other net assets had a fair value that was the same as their book value.

Note that the effect of the acquisition was not reflected in Sigma plc$$s statement above.

Required:

Prepare the consolidated balance sheet of Sigma plc on the acquisition date. Please explain and justify all steps you have taken to prepare the statement and provide details of any assumptions you have made. $($LO$2,$ LO$3,$ LO$5)$

$(15$ marks$)$