Pot acquired 1600,000 shares of spoon 3 years ago when the Retained earnings of spoon stood at $ 750,000. Pot paid an initial cash consideration of $ 3m, made a share exchange of 3 shares for every 5 shares received from spoon and promised to pay a further $1.5m in 4years time. The market value of Pots shares at the time of acquisition stood at $2m and that of Spoon was at $1.2. The current interest rate is 10%.

Below are the financial statements of Pot and Spoon as at 30 June 20X9

Statement of financial position of Pot and spoon as at 30 June 20X9

	Pot	Spoon
	$000	$000
NON CURENT ASSETS
Property plant and Equipment	2,800	3,400
Investments	3,600
Current Assets	1,500	750
Total assets	7,900	4,150
Share capital	3,500	2,000
share premium	1,400	500
retained earnings	1,800	1,200
	6,700	3,700
Non-current Liabilities	800	300
Current liabilities	400	150
Total Equity & Liabilities	7,900	4,150

Statements of profit or loss for the year ended 30 June 20X9

	Pot	Spoon
	$000	$000
Revenue	1,600	900
Cost of sales	750	350
Gross profit	850	550
Operating expenses	250	150
profit from operations	600	400
Finance costs	- 50	- 100
Investment income	70	-
Profit before Tax	620	300
Income tax expense	- 70	- 30
Profit for the year	550	270

The following additional information is relevant

1. The Pot group values the NCI using the FV method and the FV of the NCI at the date of acquisition was $850,000. Goodwill has been impaired by 40% of its value at the reporting date of which 1/3 related to the current year.
2. Spoon had plant in its Statement of Financial position at the date of acquisition with a carrying amount of $400,000 but a fair value of $600,000. The plant had a remaining life of 6 years. Depreciation is charged to Cost of sales.
3. At the start of the year, Pot transferred a machine to Spoon for $1.5m. The asset had a remaining life of 3years at the date of transfer and carrying value of $900,000 in the books of Pot at the date of transfer.
4. During the year, Spoon sold goods to Pot for $120,000 at a markup of 15%. 85 % of the goods remained unsold at the yer end.
5. At the year-end, Spoons books showed a receivable balance of $20,000 as being due from Pot. This disagreed with the payables balance of $10,000 in Pots books due to Pot having sent a check to spoon shortly before the year-end, which Spoon had not yet received.
6. Spoon pain a dividend of $ 20,000 on 1 July 20X9.

Required:

Prepare the consolidated statement of Financial position and a Consolidated Statement of profit or loss of the Pot group for the year ended 30 June 20X9

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