The following are the statements of financial position of Pelhams Ltd and Selboume Ltd as at 30 June 2019 Selbourne Ltd Pelhams Ltd Non-Current Assets: Land Piant and Equipment Investments 2 500 1 750 4300 2 400 8 000 14 900 0 4 250 Current Assets Inventory Receivables Bank 3 200 1400 600 5 200 20 100 900 650 130 1 700 5 950 TOTAL ASSETS Equity and Liabilities Equity ordinary share capital. N$0,50 Retained earnings 5 000 8 300 13 300 1 000 3 150 4 150 Liabilities Non Current liabilities 8% Loan notes Current Liabilities Total Equity and liabilities 4 000 300 2 800 20 100 1 300 5 950 Additional information: Note 1 Pelhams Lod acquired 75% of Selbourne Ltd on 1 July 2016 when the balance on Selbouwme Ltd Retained Earmngs was N$1 150. Pelhams paid N$3 500 for its investment in the share capital of Selbourne. At the same time Pelhams invested in 60% of Selboume's Loan stock Note 2: Page 10 of 20 At the reporting date Pelhams recorded a payable to Selbowme of N$400. This did not agree to the corresponding amount in Selboume's financial Statements of N$500. The difference is explained as cash in transit Additional information: Note 1 Pelhams Ltd acquired 75% of Selbourne Ltd on 1 July 2016 when the balance on Selboume Ltd Retained Earnings was N$1 150. Pelhams paid N$3 500 for its investment in the share capital of Selboume At the same time Pelhams invested in 60% of Selboume's Loan stock. Note 2: Page 10 of 20 At the reporting date Pelhams recorded a payable to Selboume of N$400. This did not agree to the corresponding amount in Selboume's financial Statements of N$500. The difference is explained as cash in transit Note 3: At the date of acquisition, it was determined that Selbourne's land carried at a cost of N52 500 had a fair value of N53 750. Selborne's plant was determined to have a fair value of N$500 in excess of its carrying value and had a remaining life of 5 years at this time. These values had not been recorded by Selbourne Ltd. Note 4: The Pelhams group uses the fair value method to value the Non-Controlling interest. For this purpose, the subsidiary share price at the date of acquisition should be used the subsidiary share price at acquisition was N$2,20 per share. Note 5: Goodwill has impaired by N$100 Required: 1.1 Prepare the Consolidated Statement of Financial Position as at 30 June 2010 1.2 Discuss the difference between deferred consideration and contingent consideration TOTAL 25 5 30