We obtained the following trial balances from the financial records of Ship Ltd (Ship) and Map Ltd (Map) for the financial year ended 28 February 2023:

Ship acquired 75% of Map's ordinary share capital from a third party on 1 March 2021 and gained control.

1. The following information relates to the at acquisition matters:

(a) The purchase consideration payable by Ship was settled as follows:

• R 1 970 000 settled in cash on 1 March 2021 and
• Transfer of a piece of land (property) owned by Ship. On 1 March 2021, the fair value of this piece of land was R450 000 and the cost price was R200 000.

(b) Ship's equity at acquisition was as follows:

• Share capital of R1 000 000 and
• Retained earnings R1 845 000.

(c) As of acquisition date, all assets and liabilities of Map were valued fairly except for those listed below:

• The fair value of equipment was determined to be R240 000 higher than its carrying amount. This equipment item had a remaining useful life of 4 years from acquisition date and a nil residual value.

• Land (property) which had a fair value of R400 000. The land is held at cost in the records Map and is Maps only piece of land which they purchased for R200 000 many years ago.

2. Since the acquisition date, Map to Ship pays a monthly management fee of R12 000. The last month's management fees are still outstanding at the end of the financial year, 28 February 2023. They will be paid only in March 2023. These outstanding fees were included as part of other receivables of Ship and as part of other payables of Map in their respective separate financial statements.

3. Ship provided Map a loan of R200 000 on 1 December 2022. The interest rate on the loan is 10% per annum. All the interest for 2023 financial year is still due at the financial year end. No loan repayments were made during the 2023 financial year as the loan is repayable in full in the 2025 financial year. The interest accrued has been included as part of other receivables in Ship and as part of other payables of Map in their respective separate financial statements.

4. From 1 January 2023, Map started to sell inventory to Ship which Ship then sells to third parties. All inventory sales to Ship are made at cost plus 50%. R30 000 of the closing inventory of R664 500 in Ships records was purchased from Map.

5. Ordinary dividends were declared on 28 February 2023 by both entities. Ship paid the dividends declared by them on the same day however the dividends declared by Map were still outstanding at year end. The trade and other receivables of Ship includes the ordinary dividend receivable from Map.

Additional information:

• All the entities in the Ship Ltd Group have a 28 February financial year end.
• Ship accounts for investments in subsidiaries at cost in accordance with IAS

27.10(a) in its separate financial statements.

• Ship elected to measure the non-controlling interest in Map at its proportionate share of Maps identifiable net assets at acquisition date.
• The company Income Tax rate is 28% and 80% of capital gains are included in taxable income.
• Ignore the effects of Dividend Tax and Value Added Tax (VAT).

REQUIRED:

Prepare only the Assets and Liabilities sections (in other words, ignore the equity section) of the Consolidated Statement of Financial Position of Ship Ltd Group at 28 February 2023. Include all totals and sub-totals.

Instructions:

• Show and reference all your workings and calculations clearly.
• Comparative figures are not required.

Notes to the financial statements are not required.