Question 2 Summarized Statements of Financial Position as at 31 May 2014 The following information is relevant: 1. Pam acquired 60% of the shares in Sam for GHe 5m four years ago when Sam's reserves show a balance of GHc 1m. At this date Sam's tangibles had a market value of GH33m and a book value of GH2.5m. These tangibles had a remaining life of 10 years at date of acquisition. 2. Pam owed Sam GHc1.5m in respect of group trading that had occurred during the year. This balance is reflected in both companies' statement of financial position. 3. Pam has a policy of valuing non-controlling interests at fair value at the date of acquisition. For this purpose the share price of Sam at this date should be used. The market price of each Sam share was GHc2 4. Goodwill on acquisition has been impaired by a total of GH425,000. 5. During the year Sam sold GHe1m goods to Pam at a mark-up of 25% on cost. Three quarters of these goods had been sold by Pam by the year end. Required: Prepare the Consolidated Statement of Financial Position as at 31 May 2014 Question 2 Summarized Statements of Financial Position as at 31 May 2014 The following information is relevant: 1. Pam acquired 60% of the shares in Sam for GHe 5m four years ago when Sam's reserves show a balance of GHc 1m. At this date Sam's tangibles had a market value of GH33m and a book value of GH2.5m. These tangibles had a remaining life of 10 years at date of acquisition. 2. Pam owed Sam GHc1.5m in respect of group trading that had occurred during the year. This balance is reflected in both companies' statement of financial position. 3. Pam has a policy of valuing non-controlling interests at fair value at the date of acquisition. For this purpose the share price of Sam at this date should be used. The market price of each Sam share was GHc2 4. Goodwill on acquisition has been impaired by a total of GH425,000. 5. During the year Sam sold GHe1m goods to Pam at a mark-up of 25% on cost. Three quarters of these goods had been sold by Pam by the year end. Required: Prepare the Consolidated Statement of Financial Position as at 31 May 2014