The draft statements of financial position of two companies as at 31 March 20x0 were as follows: Non current assets Property, plant and equipment Investment in Chopin Ltd, at cost Current Assets Inventory Trade and other receivables Bank and cash Total assets Equity and liabilities Ordinary shares of RM1 each Share premium Retained earnings Non-current liabilities 5% Debentures 2025 Current Liabilities Trade and other payables Investment income Interest expense Profit on ordinary activities before tax Less: Taxation Profit on ordinary activities ACC2134 FR2 Beethoven plc Revenue Less: Cost of sales Gross profit Less: Administration and distribution costs RM000 49,000 26,700 2,000 RM000 126,500 64.000 190,500 (b) 77,700 268,200 (c) 60,000 25,000 65,200 150,200 80,000 38,000 268,200 Chopin Ltd 20,000,000 ordinary shares for RM54 million 10,000,000 debentures for RM10 million RM000 13,400 7,000 1,800 Beethoven plc acquired its investment in Chopin Ltd on 1 April 20x9. The investment comprises: Their draft statements of profit or loss for the year ended 31 March 20x0 were: Beethoven plc Chopin Ltd RM000 RM000 295,000 194,600 100,400 60,300 40,100 2.500 4.000 38,600 11,000 27,600 RM000 50,000 50,000 22,200 72,200 25,000 13,000 11,400 49,400 10,000 12,800 72,200 69,500 38.500 31,000 26,000 5,000 2,000 FO 500 4,500 1,400 3,100 The balance on Chopin Ltd's retained earnings at the date of acquisition was RM10,800,000. Chopin Ltd purchased goods from Beethoven plc for RM8,000,000 during the year ended 31 March 20x0. Half of these remained in stock at the year end. Beethoven plc had sold these at its normal mark-up of 25%. May2021 Chopin's accounts show it owes Beethoven RM2,000,000, whereas Beethoven's accounts show RM2,500,000 is due. These balances are included in trade and other payables and trade and other receivables respectively. The difference is due to cash in transit. Chopin paid a dividend of RM2,500,000 during the year. Beethoven plc is of the opinion that the goodwill is impaired and is now worth RM8,000,000. Required: (a) Prepare the consolidated statement of financial position and statement of profit or loss for the Beethoven Group as at 31 December 20x0. (24 marks) What is meant by a group in the context of consolidated financial statements? (4 marks) Briefly explain how the principle of substance over form relates to consolidated financial statements. (2 marks)