The following are the summarised statements of financial position for Van plc and Car ltd as at 31^st December 2020, the end of their most recent accounting periods.

Statements of financial position as at 31^st December 2020

		Van plc		Car ltd
		m		m
Non-Current Assets
Land		1,100		300
Property, Plant and Equipment		1,500		800
Investment
- 450m Ordinary shares in Van ltd		1,200
Current Assets
Inventory		300		95
Receivables		450		600
Cash		80		20
Total Assets		4,630		1,815
Equity and Reserves
Ordinary 1 Shares		1,500		600
Share Premium		250
Retained Earnings		180		520
Non-Current Liabilities
4% bank loan		1,000		0
Current Liabilities
Trade Payables		1,000		500
Taxation		700		195
Total Equity and Liabilities		4,630		1,815

Additional Information:

1. Van plc acquired 450m shares in Car ltd 2 years ago. At that date the retained earnings of Car ltd amounted to 200m

2. At the date of acquisition, the fair value of Car ltds assets were the same as their carrying values with the exception of their PPE. The PPE had a fair value of 1,200m. The remaining useful life of the equipment at the date of acquisition was 4 years.

3. The group uses the FV method to value the NCI. The FV of the NCI at acquisition was valued at 300m.

4. Goodwill on acquisition has since been impaired by 20%.

Required:

1. Determine the group structure

(2 marks)

2. Calculate the net assets of the subsidiary at the date of acquisition and at the reporting date

(6 marks)

3. Calculate goodwill at the reporting date

(5 marks)

4. Calculate the non-controlling interest at the reporting date

(3 marks)

5. Calculate group retained earnings at the reporting date.

(3 marks)

6. Prepare a consolidated statement of financial position for Van group as at 31^st December 2020 (you should ensure all workings are shown).

(13 marks)

7. Explain what is meant by the term control in accordance with IFRS 10 Consolidated Financial Statements

(3 marks)