The following information is relevant for questions 2a-2i (6-14) Heights, a public listed company, acquired 75% of Songsam's ordinary shares on 1 April 2014. Heights paid an immediate N$3.50 per share in cash and agreed to pay a further amount of NS108 million on 1 April 2015. Heights's cost of capital is 8% per annum. Heights has only recorded the cash consideration of N$3.50 per share, The summarised statements of financial position of the two companies at 31 March 2015 are shown below. Heights Songsam NSM NSm Property, plant and equipment (note () 420 320 Development costs (note (iv)) 40 Investments (note (ii)) 300 20 nil Current assets 133 91 Total assets 853 471 270 80 Equity and liabilities Ordinary shares of N$1 each Reserves: Share premium Revaluation surplus Retained earnings - 1 April 2014 -year to 31 March 2015 80 45 160 190 40 nil 134 76 Non-current liabilities 10% intra group loan (note (ii)) Current liabilities nil 108 60 81 Total equity and liabilities 853 471 The following information is relevant: Heights has a policy of revaluing land and buildings to fair value. At the date of acquisition Songsam's land and buildings had a fair value N$20 million higher than their The following information is relevant for questions 2a-2i (6-14) Heights, a public listed company, acquired 75% of Songsam's ordinary shares on 1 April 2014. Heights paid an immediate N$3.50 per share in cash and agreed to pay a further amount of NS108 million on 1 April 2015. Heights's cost of capital is 8% per annum. Heights has only recorded the cash consideration of N$3.50 per share, The summarised statements of financial position of the two companies at 31 March 2015 are shown below. Heights Songsam NSM NSm Property, plant and equipment (note () 420 320 Development costs (note (iv)) 40 Investments (note (ii)) 300 20 nil Current assets 133 91 Total assets 853 471 270 80 Equity and liabilities Ordinary shares of N$1 each Reserves: Share premium Revaluation surplus Retained earnings - 1 April 2014 -year to 31 March 2015 80 45 160 190 40 nil 134 76 Non-current liabilities 10% intra group loan (note (ii)) Current liabilities nil 108 60 81 Total equity and liabilities 853 471 The following information is relevant: Heights has a policy of revaluing land and buildings to fair value. At the date of acquisition Songsam's land and buildings had a fair value N$20 million higher than their