Required: Prepare the consolidated financial statements of Griffin Ltd at 30 June 2019.

Griffin Ltd is a major Australian company operating in the manufacture of womens clothing. One of its major competitors is Frank Ltd whose business was established by a French family over 30 years ago. It has won numerous awards for its designs and has established a number of brands that have been successful, especially with the teenage market.

In order to expand its business as well as to reduce the number of players in the market, on 1 July 2016 Griffin Ltd acquired all the issued shares (less div.) of Frank Ltd for $330 000. At this date the equity of

Frank Ltd was as follows:

Share capital	$200 000
General reserve	20 000
Retained earnings	50 000

All the identifiable assets and liabilities of Frank Ltd were recorded at amounts equal to their fair values except for the following:

	Carrying amount	Fair value
Plant (cost $220 000)	$180 000	$186 000
Land	190 000	210 000
Inventories	20 000	28 000

The plants expected remaining useful life was 5 years with benefits being expected evenly over that period. The plant was sold on 1 January 2019 for $187 000. The land was sold in February 2018 for $250 000. Of the inventory, 90% was sold by 30 June 2017 and the rest by 30 June 2018.

At 1 July 2016, Frank Ltd had recorded a dividend payable of $10 000 that was paid in September 2016. Frank Ltd also had some unrecorded assets, in particular the brands relating to the successful clothing sold in the teenage market. Griffin Ltd valued these brands at $12 000 and assessed them to have an indefinite life. In its financial statements at 30 June 2016, Frank Ltd raised a contingent liability relating to a guarantee it had made to one of its related companies. Griffin Ltd assessed the fair value of the guarantee payable at $10 000. In August 2018, Frank Ltd was required to pay $2500 in relation to the guarantee.

All transfers to the general reserve made by Frank Ltd have been from retained earnings earned prior to 1 July 2016. The tax rate is 30%.

The financial information provided by the two companies at 30 June 2019 is as follows:

	Griffin Ltd	Frank Ltd
Revenues	$ 190 000	$ 110 000
Expenses	80 000	76 000
	110 000	34 000
Gains on sale of non-current assets	5 000	4 000
Profit before tax	115 000	38 000
Income tax expense	(40 000)	(6 000)
Profit for the year	75 000	32 000
Other comprehensive Income:
Gains on revaluation of plant	12 000	0
Comprehensive income for the year	$ 87 000	$ 32 000
Profit for the year	$ 75 000	$ 32 000
Retained earnings (1 July 2018)	80 000	88 000
	155 000	120 000
Dividend paid	(34 000)	0
Transfer to general reserve	0	(15 000)
	(34 000)	(15 000)
Retained earnings (30 Juno 2010)	$ 121 000	$ 105 000
Share capital	$ 280 000	$ 200 000
General reserve	20 000	48 000
Asset revaluation surplus	24 000	0
Retained earnings	121 000	105 000
Total equity	445 000	353 000
Provisions	$ 15 000	$ 12 000
Payables	40 000	8 000
Total liabilities	55 000	20 000
Total equity and liabilities	$ 500 000	$ 373 000
Cash	$ 12 000	$ 30 000
Accounts receivable	28 000	12 000
Inventories	30 000	51 000
Plant	230 000	320 000
Accumulated.depreciation Plant	(120 000)	(40 000)
Shares In Frank Ltd	320 000	0
Total assets	$ 500 000	$ 373 000