The summarized statement of financial position of the two companies as at 30 June 2015 are:
Linda $000		Stacy $000
ASSETS
Non-current assets
Property, plant, and equipment	55,000		28,600
Financial asset equity investments	11,500		6,000
Total non-current assets 66,500			34,600
Current Assets
Inventory	17,000		15,400
Trade receivables	14,300		10,500
Bank	2,200		1,600
Total current assets 33,500			27,500
TOTAL ASSETS	100,000		62,100
EQUITY AND LIABILITIES
Equity and liabilities
Equity
Equity shares of $1 each	20,000		20,000
Other component of equity	4,000		nil
Retained earnings at July 2014	26,200		14,000
For year ended 30 June 2015	24,000		10,000
Total Equity and liabilities 74,200			44,000
Current liabilities	25,800		18,100
TOTAL EQUITY AND LIABILITIES	100,00		62,100

NARRATIVE

On 1 January 2015, Stacy acquired 75% of Lindas equity shares by means of an immediate share exchange of two shares in Stacy for five shares in Linda. The fair value of Stacy and Lindas shares on 1 January 2015 were $4.00 and $3.00, respectively.

In addition to the share exchange, Stacy will make a cash payment of $1.32 per acquired share, deferred until 1 January 2016. Stacy has not recorded any of the consideration for Linda in its financial statements. Stacys cost of capital is 10% per annum.

The following additional Information is relevant:

1. Lindas business is seasonal and 60% of its annual profit is made in the period 1 January to 30 June each year.

(ii) At the date of acquisition, the fair value of Lindas net assets was equal to their carrying amounts with the following exception:

• An item of plant had a fair value of $2 million below its carrying value. At the date of acquisition, it had a remaining life of two years.
• The fair value of Lindas investment was $7 million
• Linda owned the rights to a popular mobile (cell) phone game. At the date of acquisition, a specialist valuer estimated that the rights worth $12 million and had an estimated remaining life of 5 years.

(iii) Following an impairment review, consolidated goodwill is to be written down by $3 million as at 30 June 2015.

(iv) Stacy sells goods to Linda at cost plus 30%. Linda had $1.8 million of goods in its inventory at 30 June 2015 which had been supplied by Stacy. In addition, on 28 June 2015, Stacy processed the sale of $800,000 of goods to Linda, which Linda did not account for until their receipt on 2 July 2015. The in-transit goods reconciliation should be achieved by assuming the transaction had been recorded in the books of Linda before the year end. At 30 June 2015, Stacy had a trade receivable balance of $2.4 million from Linda which differed to the equivalent balance in Lindas books due to the sale made on 28 June 2015.

(v) On 30 June 2015, the fair values of the financial asset equity investments of Stacy and Linda were $13.2 million and $7.9 million, respectively.

(vi) Stacys policy is to value the non-controlling interest at fair value at the date of acquisition.

For this purpose, Lindas share price at that date is representative of the fair value of the shares held by the non-controlling interest.

REQUIRED:

1. PREPARE THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR STACY AS AT 30 JUNE 2015