Question: Based on the information given, show the consolidated Statement of Financial Position as at 30 June 2015.

In January 2015, Pol acquired 75% of Sol's equity shares by means of an immediate share exchange of 2 shares in Pol for five shares in Sol. The share value of Poland Sol's shares at 1 January 2015 were $4.00 and $3.00 respectively. In addition to the share exchange Pol will make a cash payment of $1.32 per acquired share, deferred until 1 January 2016. Pol has not recorded any of the consideration for Sol in its financial statements. Pol's cost of capital is 10% per annum. The summarized statement of financial position for the two companies at 30 June 2015 are: POL SOL Assets $'000 $'000 Non-current assets (note (ii) Property plant and Equipment 55,000 28,600 Financial Asset Equity Investment (note (v)) 11,500 6.000 66,500 34.600 Current assets Inventory (note (iv)) 17,000 15,400 Trade Receivables (note (iv)) 14,300 10,500 Bank 2.200 1,600 33,500 27,500 Total assets 100.000 62.100 Equity and Liabilities Equity Equity shares of $1 each 20.000 20,000 Other components of Equity 4,000 Retained earnings at 1 July 2014 26200 14,000 For the year ended 30 June 2015 24.000 10.000 74,200 44,000 Liabilities Current liabilities (note ilv)) 25.800 18.100 Total equity and liabilities 100.000 62.100 The following Information is relevant: Sol's business is seasonal and 60% of its annual profits is made between 1 January and 30 June each year. At the date of acquisition, the fair value of Sol's net assets was equal to their carrying amount with the following exceptions: An item of plant had a fair value of $2 million below its carrying value at the date of Sol's acquisition it had a remaining life of 2 years The fair value of Sol's investment was $7 million (see note[v)) (iii) (iv) Sol owned the right to a popular mobile (cellular) phone game. At the date of acquisition, a specialist valuer estimated that the rights worth $12 million and had an estimated remaining life of 5 years. Following an impairment review, consolidated goodwill is to be written down by $3 million as at 30 June 2015 Pol sells goods to Sol at a cost plus 30%. Sol had $1.8 million of goods in its inventory at 30 June 2015 which had been supplied by Pol. In addition, on 28 June 2015 Pol processed the sale of $800,000 of goods to Sol which sol dis not account for until their receipt on 2 July 2015. The in-transit reconciliation should be achieved by assuming the transaction had been recorded in the books of sol before the year end at 30 June 2015. Pol had a trade receivable balance of $2.4 million from Sol which differed to the equivalent balance in Sol's Books due to the sale made on 28 June 2015. At 30 June 2015, the fair values of the financial asset equity of Poland Sol were $13.2 and $7.9 million respectively. Pol's policy is to value the non-controlling interest at a fair value at the date of acquisition For this purpose, Sol's share price at that date is representative of the fair value of the shares held by the non-controlling interest. (vi) Required Prepare the consolidated Statement of financial position as at 30 June 2015. In January 2015, Pol acquired 75% of Sol's equity shares by means of an immediate share exchange of 2 shares in Pol for five shares in Sol. The share value of Poland Sol's shares at 1 January 2015 were $4.00 and $3.00 respectively. In addition to the share exchange Pol will make a cash payment of $1.32 per acquired share, deferred until 1 January 2016. Pol has not recorded any of the consideration for Sol in its financial statements. Pol's cost of capital is 10% per annum. The summarized statement of financial position for the two companies at 30 June 2015 are: POL SOL Assets $'000 $'000 Non-current assets (note (ii) Property plant and Equipment 55,000 28,600 Financial Asset Equity Investment (note (v)) 11,500 6.000 66,500 34.600 Current assets Inventory (note (iv)) 17,000 15,400 Trade Receivables (note (iv)) 14,300 10,500 Bank 2.200 1,600 33,500 27,500 Total assets 100.000 62.100 Equity and Liabilities Equity Equity shares of $1 each 20.000 20,000 Other components of Equity 4,000 Retained earnings at 1 July 2014 26200 14,000 For the year ended 30 June 2015 24.000 10.000 74,200 44,000 Liabilities Current liabilities (note ilv)) 25.800 18.100 Total equity and liabilities 100.000 62.100 The following Information is relevant: Sol's business is seasonal and 60% of its annual profits is made between 1 January and 30 June each year. At the date of acquisition, the fair value of Sol's net assets was equal to their carrying amount with the following exceptions: An item of plant had a fair value of $2 million below its carrying value at the date of Sol's acquisition it had a remaining life of 2 years The fair value of Sol's investment was $7 million (see note[v)) (iii) (iv) Sol owned the right to a popular mobile (cellular) phone game. At the date of acquisition, a specialist valuer estimated that the rights worth $12 million and had an estimated remaining life of 5 years. Following an impairment review, consolidated goodwill is to be written down by $3 million as at 30 June 2015 Pol sells goods to Sol at a cost plus 30%. Sol had $1.8 million of goods in its inventory at 30 June 2015 which had been supplied by Pol. In addition, on 28 June 2015 Pol processed the sale of $800,000 of goods to Sol which sol dis not account for until their receipt on 2 July 2015. The in-transit reconciliation should be achieved by assuming the transaction had been recorded in the books of sol before the year end at 30 June 2015. Pol had a trade receivable balance of $2.4 million from Sol which differed to the equivalent balance in Sol's Books due to the sale made on 28 June 2015. At 30 June 2015, the fair values of the financial asset equity of Poland Sol were $13.2 and $7.9 million respectively. Pol's policy is to value the non-controlling interest at a fair value at the date of acquisition For this purpose, Sol's share price at that date is representative of the fair value of the shares held by the non-controlling interest. (vi) Required Prepare the consolidated Statement of financial position as at 30 June 2015