The following are the statements of financial position of Garden plc, its subsidiary Rose Ltd and its associate Petal Ltd:
Statements of financial position as at 31 December 20X9
| Garden | Rose | Petal | |
| ASSETS | £ | £ | £ |
| Non-current assets | |||
| Land at cost | 240,000 | 84,000 | |
| Land at valuation | 180,000 | ||
| Investment in Rose | 300,000 | ||
| Investment in Petal | 72,000 | ||
| Investments | 18,000 | ||
| Current assets | |||
| Inventories | 15,000 | 99,000 | 5,400 |
| Trade receivables | 33,000 | 98,400 | 1,200 |
| Current account – Rose | 18,000 | ||
| Current account – Petal | 2,400 | ||
| Cash | 6,600 | 67,200 | 300 |
| Total current assets | 75,000 | 264,600 | 6,900 |
| Total assets | 705,000 | 444,600 | 90,900 |
| EQUITY AND LIABILITIES | |||
| £1 shares | 300,000 | 120,000 | 30,000 |
| Revaluation reserve | 90,000 | ||
| Retained earnings | 270,000 | 216,000 | 57,600 |
| 570,000 | 426,000 | 87,600 | |
| Current liabilities | |||
| Trade payables | 135,000 | 3,600 | 900 |
| Current account – Garden | — | 15,000 | 2,400 |
| Total equity and liabilities | 705,000 | 444,600 | 90,900 |
On 1 January 20X3 Garden plc acquired 75% of Rose Ltd for £300,000 when Rose’s share capital and reserves were £252,000. At the date of acquisition, the net book value of Rose’s non-current assets were £90,000. Rose immediately included the revaluation in its statement of financial position.
On 1 January 20X5 Garden acquired 20% of Petal Ltd for £72,000 when the fair value of Petal’s net assets were £42,000. Goodwill has been impaired in Rose by £77,700 and in Petal by £31,800. At the year end, Garden plc has inventor y acquired from Rose and Petal. Rose had invoiced the inventor y to Garden for £6,000 – the cost to Rose had been £1,200 – and Petal had invoiced Garden for £3,000 – the cost to Petal had been £1,800.
Non-controlling interests are measured using method 1.
Required:
Prepare Garden plc’s consolidated statement of financial position as at 31.12.20X9.
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