JKA acquired 50% of the issued ordinary share capital of CBX, an entity set up under a

Question:

JKA acquired 50% of the issued ordinary share capital of CBX, an entity set up under a contractual agreement as a joint venture between JKA and one of its customers. JKA adopts a policy of proportionate consolidation in accounting for joint ventures.
The statements of financial position for JKA and CBX as at 31 May 2009 are provided below:

Additional information:
Intra-group trading
During the year to 31 May 2009 CBX sold goods to JKA with a sales value of $200 000. 25% of the goods remain in JKA's inventories at the year end. CBX makes 20% margin on all sales.
The final invoice amount of $34 000 remains unpaid at the year-end.
Sale of land
On 31 May 2009 JKA sold a piece of land to DEX Finance for $500 000 when the carrying value of the land was $520 000 (the original cost of the asset). Under the terms of the sale agreement JKA has the option to repurchase the land within the next three years for between $560 000 and $600 000 depending on the date of repurchase.
The land must be repurchased for $600 000 at the end of the three-year period if the option is not exercised before that time.
JKA has derecognized the land and recorded the subsequent loss within profit for the year ended 31 May 2009.
Required:
(a) Explain how the sale of the land should be accounted for in accordance with the principles of IAS 18 Revenue and the Framework for Preparation and Presentation of Financial Statements.
(b) Prepare the consolidated statement of financial position for JKA as at 31 May 2009.