. Pleasant Place Brewery Limited (PPBL) acquired 2 million equity shares in ABS Brewery Ltd (ABL) on 1 January 2019, on which date the retained earnings of ABL stood at GHC 300,000. The agreed consideration was GHC 1.5 million cash and a further GHC 600,000 on January 2021 if ABL attained certain profit targets. PPBLs cost of capital is 15%.

The draft statement of financial position of PPBL and ABL on 31 December 2019 were as follows:

Non-current assets:

PPBL ABL

GHC000 GHC000

11

PPE 2,500 Investment in ABL shares at cost 1,500

2,000 4,000 2,000

Current Assets:

Inventory 150 Receivables 800 Owings - Cash and Cash Equivalents 100

400 350 500 -

1,050 1,250

Current Liabilities

Owed to ABL 500 Trade Payables 400

Net Assets 4,150

Stated Capital

Ordinary Shares @ GHC 0.50 2,250

Revaluation Surplus 600 Retained Earnings 1,300

350

2,900

1,250 250 1,400

Additional Information:

4,150 2,900

i. ABL has an internally developed brand MSC which was valued at GHC 250,000 at the date of acquisition. There have been no changes in the share capital or revaluation surplus of ABL since PPBL gained control.

ii. At 31 December, 2019, ABL had invoiced PPBL for transfer of malt (a basic raw material for brewing) to the value of GHC 100,000 which had not been received by PPBL.

iii. There is no impairment of goodwill. It is the groups policy to value NCI at full fair value. At the acquisition date, the NCI was valued at GHC 450,000.

Required:

Prepare the consolidated statement of financial position as at 31 December 2019.