Question 2

The statements of financial position of Pike plc, Snook Ltd and Anchovy Ltd were as follows at 31 May 2021:

	Pike m		Snook m		Anchovy m
ASSETS
Non-current assets
Property, plant and equipment	751		1,127		379
Investment in Snook	395
Investment in Anchovy	407
	1,553
Current assets
Inventory	939		238		467
Receivables	380		212		251
Cash and bank	187		245		104
	1,506		695		822
Total Assets	3,059		1,822		1,201
EQUITY AND LIABILITIES
Equity
Ordinary shares, 1 each	100		200		50
Retained earnings	2,069		731		770
	2,169		931		820
Non-current labilities
Bank loan	252		343		252
Current liabilities
Trade payables	638		548		129
Total Equity and Liabilities	3,059		1,822		1,201

8 NBS-7043B

Version 1

Notes

In addition, the following information is available:

On 1 June 2019, Pike acquired 57% of the ordinary shares of Snook and 26% of the ordinary shares of Anchovy.

At the date of acquisition, the fair value of land included in the total for property, plant and equipment of Snook was 12m higher than its book value.

The retained earnings at 1 June 2019 for Snook and Anchovy were 151m and 146m respectively.

In April 2021, Pike sold goods to Snook for 7m. Pike charged Snook a mark-up on cost of 40%. Half of these goods remained in Snooks warehouse as at 31 May 2021.

Required:

Prepare the consolidated statement of financial position for the Pike Group at 31 May 2021, in accordance with international financial reporting standards.

(25 Marks)