The statement of financial position of Head PC and tail plc as at 31 December 2021 are as follows:

Assets Head plc Tail plc

Non current assets $000

Investment in Tali ltd 11.500

PPE 11,270 9,200

CURRENT ASSETS

Inventories 1,840 1,495

Trade receivables 2,070 1,265

Cash & cash equv 1 610 1,725

Equity & liab

Equity

Share capital 5,750 4,600

Retained earngs 5,175 2 070

Trade payable 6 785 2,875

Taxation 1 610 1,380

FURTHER INFORMATION

1. ON 1 January 2021 Head plc acquired 80% of ordinary Share capital and voting rights of Tail plc for $11,500,000. On the same day, Tail plc had issued shares of 4,600,000 at face value of $1 each and retained earnings of $3,450,000

2. On January 2021, the Non current assets were revalued at $10,350,000. The fair value of the revaluation has not been recorded in the books of Tail plc

3. During the year , the value of goodwill has been impaired by $230,000

4. $575,000 is an intercompany transaction included in the Trade receivables of Head ltd and in the Trade payable of Tail ltd at 31 December 2021.

5. Non controlling interest will be valued at their proportionate share of net assets

REQUIRED

Prepare a consolidated statement of financial position of Hesd ltd and its subsidiary undertaking as on 31 December 2021

And prepare the criteria for Head ltd the orientation of Tail ltd according to the standard of IFRS10 (25MARKS)