Question Four Given below are the statements of financial position of Kale Ltd and Mpya Ltd as at 31st December, 2007 Assets Non Current Assets Amounts in '000' Kale Ltd Mpya Ltd Property, Plant and Equipment 81,000 54,000 40,000 shares in Mpya Ltd 45,000 126,000 Current Assets Inventories Accounts receivables Bank Balance - 54,000 4,050 10,800 21,600 22,950 2,700 28,350 25,000 58,750 154,350 112,750 Total Assets Equity and Liabilities Equity Ordinary share capital @ Shs 675 60,750 Revaluation 16,200 33,750 10,000 Retained earnings 35,100 112,050 37,800 81,550 Liabilities Non current liabilities 14,850 16,000 Current liabilities 27,450 42,300 15,200 31,200 154,350 112,750 Kale Ltd purchased shares in Mpya Ltd on 1st January, 2004 when the retained profit and revaluation surplus in Mpya Ltd were Shs 10,000,000 and Shs 17,800,000 respectively. On 20th December, 2007 Mpya sent goods costing Shs 2,700,000 to Kale Ltd and by 31st December 2007 these goods had not been receive by the company. The management of the group believe that goodwill has been impaired by 10%. It is the group policy to measure non controlling interest at market value. The market value of the shares in Mpya Ltd immediately before Kale Ltd made investment in company was Shs 1,350 per share Required Prepare the consolidated statement of financial position of Kale Ltd as at 31st December 2007