Q1. Please provide supportive working of the answer and provide in a format so I can copy in excel easily.

The following information is also available: 1. Strawberry inventory includes goods purchased from Pear for 15,400 which is cost plus 25% 2. Included in Pear receivables is 6,750 relating to inventory sold to Strawberry during the year. Strawberry raised a cheque for this amount and sent it to Pear on 21 December 2021. This cheque was only received by Pear on 5 January 2022. 3. An impairment loss of 22,000 is to be charged against goodwill at year end 4. The land in Strawberry was revalued on acquisition and found to have a fair value of 15,000 in excess of the book value. 5. The retained earnings of Strawberry were 59,700 at the date of acquisition 6. The bonds in Strawberry' books represent borrowings from Pear in the year. The interest on these bonds is recorded as payable by Strawberry and receivable by Pear in the company Statements of Financial Position above. 7. The group values non-controlling interest on the proportionate share of the net assets method (Method 1).

Required: (a) Prepare the consolidated statement of financial position for the Pear group at 31 December 2021. (22 marks) (b) Outline the basic differences between Method 1 (Proportionate share of the net assets method and Method 2 (full fair value method) of accounting for goodwill and non-controlling interests on acquisition of a subsidiary. (No numerical example required).

On 1 January 2021 Pear bought 80% of Strawberry paying 183,250 cash. Pear also bought 100% of the bonds of Strawberry at the same date. The Statements of Financial Position as at 31 December 2021 for both companies are as follows: Statements of financial position at 31 December 2021 Pear Strawberry 's Non-current Assets Property, Plant and equipment 103,500 137,800 Investments 213,250 Current Assets Inventory 23,400 22,300 Trade Receivables 27,500 27,650 Bond interest receivable 3,000 Cash 13,450 3.765 384,100 191,515 Share Capital Retained Earnings 90,000 255,400 345,400 60,000 76,854 136,854 30,000 Non-current liabilities 10% Bonds Current Liabilities Trade Payables Bond interest payable 38,700 21.661 3.000 191,515 384,100