The task is to prepare consolidated financial statements with workings and suitable adjustments. Workings must contain subsidiary net assets calculation, NCI, goodwill, group retained earnings.

600 Parentis acquired 600 million equity shares in Offspring on 1 April 2014. The purchase consideration was made up of: . a share exchange of one share in Parentis for two shares in Offspring: . the issue of $100 10% loan note for every 500 shares acquired; and 0,09 . a deferred cash payment of 9 cents per share acquired payable on 1 April 2015. Parentis has only recorded the issue of the loan notes. 0,75 The value of each Parentis share at the date of acquisition was 75 cents and Parentis has a cost of capital of 10% per annum. The statements of financial positions as at 31 March 2015 are shown below: Parentis Offspring $000 $000 Assets NCA Property, plant and equipment (note i) 640 340 Goodwill Investments 120 Intellectual property (note ii) Current assets 160 71 Inventory (note iii) 22 Trade receivables (note iii) 44 on Bank Receivable intellectual property Total assets 920 451 Equity and liabilities 0,25 Ordinary shares of 25 cents each 300 200 Share premium Retained earnings 300 150 - 1 april 2014 210 130 - year ended 31 March 2015 90 20 NCI Non-current liabilities 10% loan notes 120 20 Current liabilities 200 81 Trade payables (note iii) 130 58 Current tax payable 45 23 Deferred consideration (cash payment) Overdraft 25 Total equity and liabilities 920 451 Additional information: (1) At the date of acquisition the fair values of Offspring's net assets were approximately equal to their carrying amounts with the exception of its properties. These properties had a fair value of 40 $40 million in excess of their carrying amounts which would create additional depreciation of 2 $2 million in the post acquisition period to 31 March 2015. The fair values have not been reflected in Offspring's statement of financial position. 10 (ii) The intellectual property is a system of encryption designed for internet use. Offspring has been advised that government legislation (passed since acquisition) has now made this type of encryption illegal. Offspring will receive $10 million in compensation from the government. 15 (ill) Offspring sold Parentis goods for $15 million in the post acquisition period. $5 million of these 5 goods are included in the inventory of Parentis at 31 March 2015. The profit made by Offspring on 6 these sales was $6 million. Offspring's trade payable account (in the records of Parentis) of 7 $7 million does not agree with Parentis's tradereceivable account (in the records of Offspring) 4 due to cash in transit of $4 million paid by Parentis (iv) Non-controlling interest is to be measured at fair value on acquisition; it is credited with 0,65 its share of goodwill. The market price of one Offspring share on 01 April 2014 was 65 cents. Due to the impact of above legislation, Parentis has concluded that the consolidated goodwill 24 has been impaired by $24 million. Required: Prepare the consolidated statement of financial position of Parentis as at 31 March 2015