Question 1 On 1 January 20X9, Dorkey Enterprises acquired 70 per cent of the shares of Spoil Company. The separate condensed statements of financial position of Dorkey Enterprises and of Spoil Company immediately after the acquisition appeared as shown below: (all amounts in ) Dorkey Spoil 2.600.000 Assets Property, plant and equipment (net) Investment in Spoil Inventories Cash Trade and other receivables 18.750.000 3.600.000 1.000.000 13.550.000 4.400.000 41.300.000 740.000 560.000 660.000 4.560.000 T 1 Equity and Liabilities Share capital Reserves Profit for the year 20X4 Provisions Current liabilities 10.000.000 16.200.000 1.600.000 100.000 13.400.000 41.300.000 2.000.000 1.600.000 240.000 250.000 470.000 4.560.000 Additional information (at acquisition date): a. The fair value of Spoil's production equipment (with a remaining useful life of 3 years) implies a surplus value of 120,000 over its carrying amount. b. Spoil owns a trademark which is not recognized in its financial statements, the estimated fair value of the trademark amounts to 650,000. c. The fair value of Spoil's inventories is estimated at 960,000. d. Spoil underestimated its product warranty provision by 50,000; this should be accounted for as a fair value adjustment at acquisition date. Required: Prepare the consolidated statement of financial position of the Dorkey Group as at 1 January 20X9