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Statements of financial position as at 31 December 2017 Robin Sparrow Finch Pic Ltd Lid E'000 E'000 E'000 Non-current assets 4.500 18.000 1.500 Investments 24.750

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Statements of financial position as at 31 December 2017 Robin Sparrow Finch Pic Ltd Lid E'000 E'000 E'000 Non-current assets 4.500 18.000 1.500 Investments 24.750 Inventory 2.250 4.500 2.250 Cash 6.100 2,025 225 Inter-company receivable from Sparrow Lid 150 Inter-company receivable from Finch Lid 75 Total assets 37,825 24.525 3.975 Share capital 3.000 6,000 750 Retained earnings 14.510 9.675 1.875 Trade payables 9.065 3.825 1.275 Intor-company payable to Robin Plc 150 75 10% bonds 11,250 4.875 37.825 24.525 3,975 Notes Robin Ple acquired 80% of Sparrow Lid on 1 January 2003 for $9,000,000 when the share capital and reserves of Sparrow Ltd were $6,750,000. At the date of acquisition, the fair value of Sparrow Ltd's non-current assets was 219,250,000. Sparrow Led has not accounted for this revaluation. No changes to share capital and non-current assets have taken place since acquisition. Robin Plc acquired 40% of Finch Led on 1 January 2005 for 4,500,000 when the share capital and reserves of Finch Ltd were $1,200,000. Goodwill for all acquisitions is capitalised. Impairment of 50% is to be recognised against the goodwill of Sparrow Ltd in 2017 and impairment of 10% is to be recognised against the goodwill of Finch Ltd in 2017. Robin Ple charges Sparrow Ltd a management fee of $500,000 and Finch Ltd a management fee of f100,000. None of the companies has accounted for this management fee and the management fee remains unpaid at the end of 2017. In 2017 Robin ple sells inventory which cost $375,000 to Sparrow Ltd for 2750,000. 30% of the inventory remains with Sparrow Ltd at the end of 2017. In 2017, Finch Ltd sells inventory which cost $500,000 to Robin ple for $625,000. 50% of the inventory remains with Finch Ltd at the end of 2017. Required Robin Plc. Prepare the consolidated statement of financial position as at 31 December 2017 for (20 marks)

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