The following trial balances were obtained from the financial records of Dairy Ltd ("Dairy") and Fruit Ltd ("Fruit") for the financial year ended 31 December 2021: On 1 January 2021, Dairy acquired 75% of the ordinary share capital of Fruit from another entity called Juice Ltd, thereby obtaining control over Fruit. 1. The following information relates to the at acquisition matters: a) The purchase consideration payable by Dairy was settled as follows: - R 1750000 settled in cash on 1 January 2021. - Dairy issued 100000 ordinary shares. On the date of acquisition, the market price (fair value) of the Dairy shares was R3.00 each and market price (fair value) of Fruit shares was R1.50 each. - Transfer of one of Dairy's equipment items. The equipment had a carrying amount of R300 000 and a fair value of R 350000 on 1 January 2021. Dairy recognises gains or losses on any remeasurement of assets and liabilities in other income/expenses (profit and loss) as per IFRS3.38. b) A contingent liability of R180 000 was disclosed in the financial statements of Fruit regarding a claimant suing for damages after slipping on fruit at Fruit's premises. The lawyers of Fruit were of the opinion that the safety of employees was a risk due to the unhygienic nature of the premises. The outflow of economic benefits was however not probable given the lack of evidence on the part of the claimant. The fair value of the legal claim at 1 January 2021 was reliably determined by an actuary as R60000. The court verdict is expected during 2021. Should the claim be successful, any amount paid by Fruit will be deductible for income tax purposes. c) Fruit has a popular brand called 'A-peach-iation' which Fruit internally generated a number of years ago. This brand is separable from Fruit's business. The fair value of the brand was determined to be R78 000 at the date of acquisition. The patented brand is expected to have a useful life of 12 years and the South African Revenue Services also allows the same resulting annual allowance. d) At acquisition date, all the assets and liabilities of Fruit were considered to be fairly valued except for an item of property, plant and equipment ("PPE") for which the fair value was considered to be R160 000 above its carrying amount. The item of PPE had a remaining useful life of 5 years from acquisition date and a nil residual value. 2. The court case regarding the claimant suing for damages after slipping on fruit (see 1(b) above) was not conducted during the 2021 financial year due to individuals being unable to attend the scheduled court dates. The lawyers of Fruit therefore maintained their original opinion disclosed in the contingent liability. The court case was rescheduled to the 2022 financial year. 3. From the month of the acquisition date, a monthly management fee of R5 000 is paid by Fruit to Dairy. At financial year end 31 December 2021, there was no outstanding management fee due. 4. Dairy provided a loan of R300 000 on 30 June 2021 to Fruit. The interest rate on the loan is 10% per annum simple interest. 5. From 1 January 2021, Fruit began selling inventory to Dairy. All sales to Dairy are made at cost plus 50%. The product sales during the financial year to Dairy by Fruit amounted to R150 000. Of the R592 500 closing inventory in Dairy's accounting records, R60 000 was purchased from Fruit. 6. The trade and receivables of Dairy includes the ordinary dividend receivable from Fruit. Additional information: - All the entities in the Dairy Ltd Group have a 31 December financial year end. - Dairy accounts for investments in subsidiaries at cost in accordance with IAS 27.10(a) in its separate financial statements. - Dairy elected to measure the non-controlling interest in Fruit at its proportionate share of Fruit's identifiable net assets at acquisition date. - Assume a companies' Income Tax rate of 28%. - Ignore the effects of Dividend Tax and Value Added Tax (VAT). REQUIRED: Prepare the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Financial Position of the Dairy Ltd Group for the financial year ended 31 December 2021 Show all workings. Comparative figures are not required. The following trial balances were obtained from the financial records of Dairy Ltd ("Dairy") and Fruit Ltd ("Fruit") for the financial year ended 31 December 2021: On 1 January 2021, Dairy acquired 75% of the ordinary share capital of Fruit from another entity called Juice Ltd, thereby obtaining control over Fruit. 1. The following information relates to the at acquisition matters: a) The purchase consideration payable by Dairy was settled as follows: - R 1750000 settled in cash on 1 January 2021. - Dairy issued 100000 ordinary shares. On the date of acquisition, the market price (fair value) of the Dairy shares was R3.00 each and market price (fair value) of Fruit shares was R1.50 each. - Transfer of one of Dairy's equipment items. The equipment had a carrying amount of R300 000 and a fair value of R 350000 on 1 January 2021. Dairy recognises gains or losses on any remeasurement of assets and liabilities in other income/expenses (profit and loss) as per IFRS3.38. b) A contingent liability of R180 000 was disclosed in the financial statements of Fruit regarding a claimant suing for damages after slipping on fruit at Fruit's premises. The lawyers of Fruit were of the opinion that the safety of employees was a risk due to the unhygienic nature of the premises. The outflow of economic benefits was however not probable given the lack of evidence on the part of the claimant. The fair value of the legal claim at 1 January 2021 was reliably determined by an actuary as R60000. The court verdict is expected during 2021. Should the claim be successful, any amount paid by Fruit will be deductible for income tax purposes. c) Fruit has a popular brand called 'A-peach-iation' which Fruit internally generated a number of years ago. This brand is separable from Fruit's business. The fair value of the brand was determined to be R78 000 at the date of acquisition. The patented brand is expected to have a useful life of 12 years and the South African Revenue Services also allows the same resulting annual allowance. d) At acquisition date, all the assets and liabilities of Fruit were considered to be fairly valued except for an item of property, plant and equipment ("PPE") for which the fair value was considered to be R160 000 above its carrying amount. The item of PPE had a remaining useful life of 5 years from acquisition date and a nil residual value. 2. The court case regarding the claimant suing for damages after slipping on fruit (see 1(b) above) was not conducted during the 2021 financial year due to individuals being unable to attend the scheduled court dates. The lawyers of Fruit therefore maintained their original opinion disclosed in the contingent liability. The court case was rescheduled to the 2022 financial year. 3. From the month of the acquisition date, a monthly management fee of R5 000 is paid by Fruit to Dairy. At financial year end 31 December 2021, there was no outstanding management fee due. 4. Dairy provided a loan of R300 000 on 30 June 2021 to Fruit. The interest rate on the loan is 10% per annum simple interest. 5. From 1 January 2021, Fruit began selling inventory to Dairy. All sales to Dairy are made at cost plus 50%. The product sales during the financial year to Dairy by Fruit amounted to R150 000. Of the R592 500 closing inventory in Dairy's accounting records, R60 000 was purchased from Fruit. 6. The trade and receivables of Dairy includes the ordinary dividend receivable from Fruit. Additional information: - All the entities in the Dairy Ltd Group have a 31 December financial year end. - Dairy accounts for investments in subsidiaries at cost in accordance with IAS 27.10(a) in its separate financial statements. - Dairy elected to measure the non-controlling interest in Fruit at its proportionate share of Fruit's identifiable net assets at acquisition date. - Assume a companies' Income Tax rate of 28%. - Ignore the effects of Dividend Tax and Value Added Tax (VAT). REQUIRED: Prepare the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Financial Position of the Dairy Ltd Group for the financial year ended 31 December 2021 Show all workings. Comparative figures are not required