Question 3 (35 marks XYZ Limited acquired 60% of the issued share capital of ABC Limited on 01 June 2019 for P4 740 000. At that date the retained earnings for ABC Limited were P180 000. The statements of financial position for the two companies as at 30 June 2020 are as follows: XYZ ABC P'000 P'000 ASSETS Non-Current Assets Investment in ABC 6653 Property, plant and equipment 6020 5845 Current assets 3 541 2 653 Total assets 16214 8 498 EQUITY AND LIABILITIES Equity Share capital 6 933 3 333 Share premium 3733 1 333 Retained earnings 3 808 368 Total equity 14 474 5 035 960 Non-current liabilities Current liabilities Total liabilities 780 1 740 1920 1 544 3 464 Total equity and liabilities 16 214 8.499 Additional information: 1. At 01 June 2019 the fair value of the non-current assets of ABC Limited was P800 000 more than the book value. This revaluation has not been recorded in their books (ignore any effect on the depreciation for the year). 2. The goodwill for XYZ Limited has been impaired by P213 335 during the year. 3. According to XYZ Limited non-controlling interest will be valued at their proportionate share of net assets. 4. On 1 March 2020, XYZ Limited made an interest free long-term loan of P333 335 to ABC Limited. This was classified it as part of its investment in ABC Limited Ltd. ABC Limited has classified the same loan as a non-current liability in its books. No loan repayment has yet been made. Required: a) Prepare notes or workings for (1) Goodwill, (ii) retained earnings for the group and (iii) Non- Controlling interest [18 marks) b) Prepare a Consolidated Statement of Financial Position for XYZ Limited and its new subsidiary as at 30 June 2020 [17 Marks)