Prepare the consolidated financial statements of P Ltd and its subsidiary for the reporting period ended 31 March 2021

S Ltd 600 000 STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021 P Ltd ASSETS Property, plant and equipment 2 000 000 Investment in S Ltd: 60 000 shares at cost 420 000 Loan to S Ltd 85 000 Inventories 615 000 Trade receivables 380 000 Total assets 3 500 000 EQUITY AND LIABILITIES Share capital 2 500 000 Revaluation surplus Retained earnings 750 000 Loan from P Ltd Trade payables 250 000 Total equity and liabilities 3 500 000 120 000 260 000 980 000 500 000 40 000 175 000 85 000 180 000 980 000 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 March 2021 P Ltd S Ltd Revenue 1 000 000 400 000 Cost of sales (480 000) (190 000) Gross profit 520 000 210 000 Dividend received from S Ltd 12 000 Other expenses (232 000) (80 000) Profit before tax 300 000 130 000 Income tax expense (80 000) (40 000) PROFIT FOR THE YEAR 220 000 90 000 Other comprehensive income for the year, net of tax 30 000 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 250 000 90 000 P Ltd Retained earnings 600 000 S Ltd Retained earnings 105 000 Balance at 1 April 2020 Changes in equity for 2021 Total comprehensive income for the year: Profit for the year Dividend paid Other comprehensive income for the year Balance at 31 March 2021 220 000 (70 000) 90 000 (20 000) 750 000 175 000 P Ltd bought 120 000 shares in S Ltd on 1 June 2016. At that date the equity of the companies were as follows: P Ltd R S Ltd R Authorised share capital: P Ltd 2 000 000 Shares (one voting right attached to each share) S Ltd 500 000 Shares (one voting right attached to each share) Issued share capital: 1 000 000 shares 100 000 shares 2 500 000 500 000 Other components of equity at 1 June 2016: Revaluation surplus Retained earnings 40 000 60 000 400 000 P Ltd elected to measure the non-controlling interests in an acquire at fair value. At the acquisition date the fair value of the non-controlling interests was R7,00 per share. P Ltd recognises the investment in S Ltd using the cost method. Assume that the identifiable assets acquired and the liabilities assumed at acquisition date are shown at their acquisition-date fair values, as determined in terms of IFRS 3. Since 1 March 2017, P Ltd has acquired some of its inventories from S Ltd at cost price plus 337%. Total intragroup sales of inventories for the reporting period amounted to R200 000. Included in the inventories of P Ltd were the following inventories that were purchased from S Ltd: 1 April 2020 R60 000 31 March 2021 R100 000 S Ltd 600 000 STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021 P Ltd ASSETS Property, plant and equipment 2 000 000 Investment in S Ltd: 60 000 shares at cost 420 000 Loan to S Ltd 85 000 Inventories 615 000 Trade receivables 380 000 Total assets 3 500 000 EQUITY AND LIABILITIES Share capital 2 500 000 Revaluation surplus Retained earnings 750 000 Loan from P Ltd Trade payables 250 000 Total equity and liabilities 3 500 000 120 000 260 000 980 000 500 000 40 000 175 000 85 000 180 000 980 000 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 March 2021 P Ltd S Ltd Revenue 1 000 000 400 000 Cost of sales (480 000) (190 000) Gross profit 520 000 210 000 Dividend received from S Ltd 12 000 Other expenses (232 000) (80 000) Profit before tax 300 000 130 000 Income tax expense (80 000) (40 000) PROFIT FOR THE YEAR 220 000 90 000 Other comprehensive income for the year, net of tax 30 000 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 250 000 90 000 P Ltd Retained earnings 600 000 S Ltd Retained earnings 105 000 Balance at 1 April 2020 Changes in equity for 2021 Total comprehensive income for the year: Profit for the year Dividend paid Other comprehensive income for the year Balance at 31 March 2021 220 000 (70 000) 90 000 (20 000) 750 000 175 000 P Ltd bought 120 000 shares in S Ltd on 1 June 2016. At that date the equity of the companies were as follows: P Ltd R S Ltd R Authorised share capital: P Ltd 2 000 000 Shares (one voting right attached to each share) S Ltd 500 000 Shares (one voting right attached to each share) Issued share capital: 1 000 000 shares 100 000 shares 2 500 000 500 000 Other components of equity at 1 June 2016: Revaluation surplus Retained earnings 40 000 60 000 400 000 P Ltd elected to measure the non-controlling interests in an acquire at fair value. At the acquisition date the fair value of the non-controlling interests was R7,00 per share. P Ltd recognises the investment in S Ltd using the cost method. Assume that the identifiable assets acquired and the liabilities assumed at acquisition date are shown at their acquisition-date fair values, as determined in terms of IFRS 3. Since 1 March 2017, P Ltd has acquired some of its inventories from S Ltd at cost price plus 337%. Total intragroup sales of inventories for the reporting period amounted to R200 000. Included in the inventories of P Ltd were the following inventories that were purchased from S Ltd: 1 April 2020 R60 000 31 March 2021 R100 000