Wind ple prepares its financial statements to 31 December each year. They purchased 800,000 of the I ordinary shares in Rain Ltd on 1 January 2018. The fair value of Rain Ltd's net assets was the same as their book value except for plant and equipment that was understated by 400,000. Rain Ltd has not reflected this in its financial statements On 1" July 2018 Wind plc purchased 300,000 of the I ordinary shares in Ice Ltd. On this date the fair value of icial statements Question 4. (5 Marks) Total (50 Marks) Lowry ts on 31 at 31 December 2018. 2016 td Ice's net assets was the same as their book value. 19 Statement of Financial Position as at 31 December 2018 Assets Wind plc Non-current assets 12,000 Property, plant and equipment Investment in Rain Investment in Ice "000 Rain Ltd '000 2,500 lee Ltd '000 2,000 2,250 750 15,000 2.500 2,000 Current assets Inventories Trade receivables Other receivables Bank 100 40 20 1,800 1,000 200 200 3,200 18,200 250 100 50 50 450 2,950 30 190 2,190 Total assets Equity and Liabilities Equity Ordinary share capital 1 Share premium Retained earnings Total equity 10,000 1,000 5,200 16,200 1,000 200 1,460 2,660 1,000 100 980 2,080 60 Current Liabilities Trade payables Other payables Taxation 1,100 500 400 2,000 18,200 50 200 40 290 2,950 50 110 2,190 Total equity and liabilities "000 Additional information: (a) In October 2018, Rain Ltd sold goods to Wind ple with an invoice value of 400,000 on which Rain Ltd made a mark-up of 25%. One half of these goods remained in Wind ple's inventory at 31 December 2018, There was no other trading between Wind plc, Rain Ltd and Ice Ltd during 2018, (b) None of these three companies has issued or cancelled shares since incorporation. Each of the companies depreciates plant and equipment on a straight-line basis at 25% per annum. (e) Profit of the three companies for the year ended 31 December 2018 is as follows: Wind plc 2,760 Rain Ltd 500 Ice Ltd (d) With respect to the measurement of non-controlling interests at the date of acquisition of Rain Ltd, the proportionate share method is used. The directors of Wind ple are confident that any goodwill arising on acquisition of Rain Ltd and the carrying value of the investment in Ice Ltd have not been impaired at 31 December 2018 (e) The shareholders of Wind ple and Rain Ltd approved the proposed dividends of 500,000 and 200,000 respectively in December 2018, which were correctly accounted for in the above financial statements and were subsequently paid in 2019. 380 (1) The activities and profits of the three companies accrue evenly throughout the year. Requirement: (1) Prepare the consolidated Statement of Financial Position for Wind Group as at 31 December 2018, showing the following accounts: Cost of Control Non-Controlling Interests Consolidated Reserves (45 Marks)