Question 2 [25 marks]

Perry plc, Selby Ltd and Allen Ltd have prepared the following balance sheets for the year ended 31 December 2021:

	Perry 000	Selby 000	Allen 000
Non-current assets
Property, plant & equipment	8,800	6,440	3,220
Investment in Selby	7,200
Investment in Allen	3,300
	19,300	6,440	3,220
Current assets
Inventories	955	590	450
Receivables	890	224	182
Cash and cash equivalents	632	176	54
	2,477	990	686
Total Assets	21,777	7,430	3,906
Equity and Liabilities
Equity
Share Capital (1 ordinary shares)	12,000	6,000	3,300
Share premium	2,600	200
Retained Earnings	4,100	1,140	545
	18,700	7,340	3,845
Non-current liabilities
Loans	2,000	35
Current Liabilities
Payables	1,077	55	61
Total Equity and Liabilities	21,777	7,430	3,906

The following information is relevant for preparing the consolidated balance sheet of the Perry Group.

1. On 1 January 2021 Perry plc purchased 4,500,000 ordinary shares in Selby Ltd. At that date, the retained earnings of Selby Ltd were 800,000 and the fair value of its net assets exceeded the carrying amount by 220,000. This increase related to land.
2. Perry plc purchased 990,000 ordinary shares in Allen Ltd on 30 June 2021, when the retained earnings of Allen were 481,000.
3. On 4 July 2021, Selby sold goods to Perry for 400,000. Selby has a profit margin of 25%. Half of this inventory is held by Perry at 31 December 2021.
4. A balance of 70,000 for the sale of this inventory is outstanding at the year end.
5. At the year end the goodwill in Selby is deemed to be impaired by 5,000.
6. The groups policy is to measure non-controlling interest as a percentage of net assets.

Required:

Prepare the consolidated statement of financial position of the Perry group for the year ended 31 December 2021, in accordance with international financial reporting standards.