You are the Group Accountant of Peace Plc$.$ The draft statements of financial position as at $31$

March, $2023$ for the three $(3)$ companies are given below:

Peace Love Joy

Assets K$000$ K$000$ K$000$

Non$-$current assets

Property, Plant and Equipment $500,000200,000150,000$

Investments $250,000--$

Total non$-$current assets $750,000200,000150,000$

Current assets

Inventory $50,00045,00013,000$

Trade Receivables $32,00021,00011,000$

Bank $-15,0009,000$

Total current assets $82,00081,00033,000$

Total assets $832,000281,000183,000$

Equity and liabilities

Equity shares K$2$ each $400,000100,00080,000$

Share Premium $151,00015,00065,000$

Retained earnings $115,00065,00014,000$

$666,000180,000159,000$

Non$-$current liabilities

$12\%$ Loan notes $80,00050,00010,000$

Current liabilities

Trade Payables $24,00032,0009,000$

Taxation $23,00019,0005,000$

Bank overdraft $39,000--$

Total current liabilities $86,00051,00014,000$

Total capital and liabilities $832,000281,000183,000$

The following notes are relevant:

$($i$)$ On $1$ April $2022,$ Peace acquired $75\%$ ordinary shares in Love. The consideration was

made up of:

$$ A share exchange of $2$ shares in Peace for every $10$ shares in Love and a

deferred consideration to be paid in exactly three $(3)$ years$$ time. Neither of

the consideration has yet been recorded.

$$ The fair value of deferred consideration on $1$ April $2022$ was K$23\mathrm{.}5$ million

and the cost of capital of Peace is $10\%$ annually. The market values of one $(1)$

share of Peace and Love on $1$ April, $2022$ were K$4$ and K$3$ respectively.

$2$

$($ii$)$ The non$-$controlling interest is to be measured at fair value. The market price of shares

of Love on $1$ April, $2022$ is deemed to be representative of the fair value of noncontrolling interest.

$($iii$)$ At the date of acquisition, the carrying values of Love assets were equal to their fair

values with the exception of property $($land and building$)$ whose fair values were K$4$

million and K$6$ million more than their carrying values respectively. The building had

a remaining useful life of four $(4)$ years at the date of acquisition and it is depreciated

on a straight$-$line basis.

$($iv$)$ On $1$ October $2022,$ Peace acquired $25\%$ shares in Joy for K$5$ per share. This cash

payment is included in the investments value. The investments value also includes

investment property of Peace, which has been accounted for correctly.

$($v$)$ The retained earnings of Love on $1$ April, $2022$ were K$75\mathrm{.}5$ million and the retained

earnings of Joy on $1$ October, $2022$ were K$8$ million.

$($vi$)$ In the post$-$acquisition period, Love sold goods to Peace at a $20\%$ profit margin. At the

year end, inventory worth K$42$ million received from Love was still in the closing

inventory of Peace.

$($vii$)$ Neither Love nor Joy issued shares in the post$-$acquisition period. Further, no dividends

were paid during the year by any of the companies.

$($viii$)$ The current account balance of Peace in the books of Love was K$6$ million but Peace

recognized a balance of K$4$ million. The difference in the current accounts is due to a

cheque in transit which Peace sent on the last day of the financial year, but had not been

received by Love until the $10$th of April $2023.$

$($ix$)$ Goodwill in Love and investment in Joy were not impaired as at $31$ March, $2023.$

Required:

$($a$)$ Prepare the consolidated statement of financial position for Peace Group as at $31$ March,

$2023$ according to IFRS$/$IAS requirement