The statements of financial position of Red Ltd and Pink Ltd at 31 December 20X2 are as follows: Red Pink
| |
Red $ |
Pink $ |
|
ASSETS
|
|
|
|
Non-current assets
|
200,000
|
100000
|
|
Depreciation
|
80,000
|
30,000
|
|
|
120000
|
70,000
|
|
Investment in Fink Ltd
|
110,000
|
|
|
Current assets
|
|
|
|
1nventones
|
100000
|
30,000
|
|
Trade receivables,
|
80,000
|
40,000
|
|
Current account - Rink Ltd
|
10000
|
|
|
Bank
|
16,000
|
8,000
|
|
|
206,000
|
78,000
|
|
Total assets
|
436,000
|
148,000
|
|
EQUITY AND LIABILITIES
|
|
|
|
Capitol and resents
|
|
|
|
$1 cocrrnon shares
|
176,000
|
40,000
|
|
Genera/ reserve
|
20,000
|
14,000
|
|
Retained earnings
|
100,000
|
60,000
|
|
|
296,000
|
114,000
|
|
Current liabilities
|
|
|
|
Trade payables
|
125,996
|
18,000
|
|
Taxation payable
|
14,004
|
6,000
|
|
Current account - Red Ltd
|
|
10,000
|
|
|
140,000
|
34,000
|
|
Total equity and liabilities
|
436,000
|
148,000
|
Statements of comprehensive Income for the year ended 31 December 20X2
|
|
S
|
S
|
|
Sales
|
200,000
|
120,000
|
|
Cost of sales
|
60,080
|
60,000
|
|
Gross profit
|
140,000
|
60,000
|
|
Expenses
|
59,082
|
40,000
|
|
Dividends received
|
3,750
|
NL
|
|
Profit before tax
|
84,668
|
20,000
|
|
Income tax expense
|
14,004
|
6,000
|
|
|
70,664
|
14,000
|
Red Ltd acquired 75% of the shares in Pink Ltd on 1 January 20X0 when Pink Ltd's retained earnings were $30,000 and the balance on Pink's general reserve was $8,000. The fair value of the non-controlling interest at the date was £32,000. Non-controlling interests are to be measured using method 2. During the year Pink sold Red goods for $9,000 plus a mark-up of one-third. Half of these goods were still in inventory at the end of the year. Goodwill suffered an impairment loss of 20%.
Required:
Prepare a consolidated statement of comprehensive income for the year ended 31/12/20X2 and a statement of financial position as at that date.