QUESTION 4. You are provided with the following statements of financial position for College Ltd and School Ltd as at 31 December 2019. Non-Current Assets College School P P PPE 650,000 140,000 Investment Property 400,000 100,000 Investment in shares in School 400,000 . 1,450,000 240,000 Net Current Assets Inventory at cost 440,000 140,000 Receivables 290,000 210,000 Cash and cash equivalents 200,000 - Payables (550,000) (110,000) Bank overdraft 0 (40,000) 380,000 200,000 Net Assets 1,830,000 440,000 Stated Capital (ordinary shares issued at P1.00 each) 1,400,000 340,000 Income surplus 430,000 100,000 1,830,000 440,000 The following information is also available: a) College purchased 70% of the issued ordinary share capital of School in 2015 when the income surplus of School were P40,000. There has been no impairment of goodwill. b) For the purpose of the acquisition, plant in School with book value of P100,000 was revalued to its fair value of P120,000. The revaluation was not recorded in the accounts of School. Depreciation is charged at 20% using the straight-line method. Q P - A S R - 0 0 1 | R e v 0 0 1 E f f D a t e : 0 9 - 0 8 - 2 0 2 3 Page 6 of 6 c) College sells goods to School at a margin of 20%. At 31 December 2019, the inventories of School included P90,000 of goods purchased from College. d) School owes College P70,000 for goods purchased and College owes School P30,000. e) It is the groups policy to value the non-controlling interest at full fair value. f) The market price of the shares of non-controlling shareholders just before the acquisition was P1.50. Required a. Prepare the consolidated statement of financial position of College as at 31 December 2019. (15 marks) b. Explain the following terms as used in the preparation of consolidated financial statements i. Control ii. Non-controlling Interest iii. Group iv. Subsidiary v. parent (5 marks) c. State five (5) exemptions under which a company would not prepare consolidated statement of financial position (5 Marks) (Total: 25 marks)