Question 1: Jupiter Plc is a leading engineering company. On 1 Jan 2020 it acquired 60% of the issued shares of Pluto Ltd and gained control. The statements of financial position of the two companies as at 31 December 2020 were as follows: Jupiter Plc Pluto Ltd '000 '000 Non-current assets Freehold property 620 780 Plant and equipment 460 360 Investment in Pluto Ltd 850 Current assets Inventory 735 320 Trade receivables 865 530 Cash 480 245 TOTA ASSETS 4,010 2,235 Current liabilities Trade payables 660 485 Non-current liabilities Debentures 350 200 TOTAL LIABILITIES 1,010 685 NET ASSETS 3,000 1,550 Equity Ordinary share capital 700 400 Share premium 200 100 Retained earnings 2,100 1,050 3,000 1,550 The following information is relevant: 1. The balance of Pluto Ltd's retained earnings at 1 Jan 2020 was 420,000. 2. On the date of the acquisition, the fair value of Pluto Ltd' freehold property was 150,000 in excess of the book values. Pluto Ltd does not account for this amount in its own accounts. Jupiter Plc depreciates its property using the straight line and at 1 Jan 2020, these assets had a remaining useful life of 10 years. 3. On 1 Jul 2020, Jupiter Plc sold inventory to Pluto Ltd at a price of 120,000. Jupiter Plc sets its selling prices by marking up the cost by 25%. By 31 December 2020, Pluto Ltd has sold only half of this inventory to third parties. 4. Included in Jupiter Plc's trade payables is a balance due to Pluto of 20,000. Pluto's trade receivables include a balance of 20,000 owing from Venus Plc. 5. Goodwill arising on acquisition is subject to impairment review. For the year ended 31 Dec 2020, the directors estimate that goodwill has been impaired by 28,000. Required: Prepare a consolidated statement of financial position (CSFP) for Venus Plc and its subsidiary as at 31 December 2020. (40 marks)