QUESTION ONE (a) The statement of financial position of three companies as at 31 December 2017 showed the following position. Non-Current Assets Property Plant & Equipment Investment Current asset Inventory Trade receivables Bank balances Total Asset Kaneshie Ltd Circle Ltd Madina Ltd GHC GHC GHC 420,000 410,000 400,000 450.000 150,000 870,000 560,000 400,000 150,000 120,000 100,000 200,000 150,000 130,000 100,000 50,000 20,000 450,000 320,000 250,000 1,320,000 880.000 650.000 Equity and Liability Stated Capital Ordinary Shares (atGHC1 each) 500,000 200,000 100,000 Preference Shares (at GHC1 each) 200,000 150.000 20,000 Income Surplus 150,000 100,000 80,000 Capital Surplus 200,000 80,000 50,000 1,050,000 530,000 250,000 Non Current Liabilities 30% Bonds 100,000 120,000 50,000 Current Liability Trade Payable 100,000 150,000 300,000 Income Tax 70.000 80.000 50.000 Total Equity and Liability 1,320,000 880.000 650,000 Additional information 1. Kaneshie Ltd acquired 160,000 shares in Circle Ltd at GHC2 per share on 1st January 2014, when the income surplus and capital surplus balances of Circle Ltd were GHC60,000 and GHC40,000 respectively. The fair value of non-controlling interest of Circle Ltd at the date of acquisition was GHC125,000. 2. Kaneshie Ltd acquired 60,000 shares in Madina Ltd on 31st December 2014 for GHC130,000, when the income surplus balance was GHC30,000. There has been no movement in the capital surplus accounts since acquisition. 3. On 31 December 2014 Circle Ltd acquired 20,000 shares in Madina Ltd for GHC50,000. 4. The fair value of non-controlling interest of Madina Ltd on 31 December 2014 was GHC85,000. 6. Included in inventories of Circle Ltd were goods purchased from Kaneshie Ltd of which Kaneshie Ltd made a profit of GHC15,000. Required: Prepare the consolidated statement of financial position as at 31 December 2017 for Kaneshie Ltd and its subsidiaries in accordance with the relevant IFRS.