QUESTION 1 Below are the statements of financial position of three companies as at 31 December 2017. Bauble Jewel Gem Co Co Co GHS000 GHS000 GHS000 Non-current assets

Property, plant and equipment	720	60	75
Investments in group companies	185	100
905	160	75
Current assets	175	90	85
1,080	250	160
Equity Share capital GHC1 ordinary shares	400
100 50
Retained earnings	560	90	70

960	190 115
Current liabilities	120 60 1,080 250	40 160

You are also given the following information: i. Bauble Co acquired 65% of the share capital of Jewel Co on 1st January 2010 and 15% of Gem on 1st January 2011. The cost of the combinations were GHC 140,000 and GHC 45,000 respectively. Jewel Co acquired 80% of the share capital of Gem Co on 1st January 2011. ii. The retained earnings balances of Jewel Co and Gem Co were:

1st January 2010 GHC000	1st January 2011 GHC000
Jewel Co	40	55
Gem Co	35	45

iii. The fair values of Jewel's Property, Plant and Equipment were equal to their book values with the exception of its plant, which had a fair value of GHS 12,000 in excess of its book value at the date of acquisition. The remaining life of all of Jewel's plant at the date of its acquisition was four years and this period has not changed as a result of the acquisition. Depreciation of plant is on a straight-line basis and charged to cost of sales. Jewel has not adjusted the value of its plant as a result of the fair value exercise. iv. Revenues and profits should be deemed to accrue evenly throughout the year. v. Following an impairment review, there was no impairment loss on any of the consolidated goodwill as at 31st December 2017.

vi.	Gem sells goods to Bauble at cost plus 30%. Bauble had GHS 12,000 of goods in its inventory included in the current assets at 31st December 2017 which had been supplied by Gem.

Page 3 of 7 vii. In addition, on 28 December 2017, Gem processed the sale of GHS1,500 of goods to Bauble, which Bauble did not account for until their receipt on 2nd January 2018. The in-transit reconciliation should be achieved by assuming the transaction had been recorded in the books of Bauble before the year end. At 31st December 2017, Gem had a trade receivable balance in the current assets of GHS2,000 due from Bauble which differed to the equivalent balance in Baubles books due to the sale made on 28 December 2017.

viii.

It is the group's policy to value the non-controlling interest at acquisition at its proportionate share of the fair value of the subsidiary's identifiable net assets.

Required Prepare the consolidated statement of financial position for Bauble Co and its subsidiaries as at 31st December 2017.