Parentis, a public listed company, acquired 600 million equity shares in Offspring on 1 April 2006. The purchase consideration was made up of:
- A share exchange of one share in Parentis for two shares in Offspring
- The issue of $100 10% loan note for every 500 shares acquired; and
- A deferred cash payment of 11 cents per share acquired payable on 1 April 2007.
Parentis has only recorded the issue of the loan notes. The value of each Parentis share at the date of acquisition was 75 cents and Parentis has a cost of capital of 10% per annum.
The statements of financial position of the two companies at 31 March 2007 are shown below:

The following information is relevant:
(i) At the date of acquisition the fair values of Offspring's net assets were approximately equal to their carrying amounts with the exception of its properties. These properties had a fair value of $40 million in excess of their carrying amounts which would create additional depreciation of $2 million in the post-acquisition period to 31 March 2007. The fair values have not been reflected in Offspring's statement of financial position.
(ii) The intellectual property is a system of encryption designed for internet use. Offspring has been advised that government legislation (passed since acquisition) has now made this type of encryption illegal. Offspring will receive $10 million in compensation from the government.
(iii) Offspring sold Parentis goods for $15 million in the post-acquisition period. $5 million of these goods are included in the inventory of Parentis at 31 March 2007. The profit made by Offspring on these sales was $6 million. Offspring's trade payable account (in the records of Parentis) of $7 million does not agree with Parentis's trade receivable account (in the records of Offspring) due to cash in transit of $4 million paid by Parentis.
(iv) Due to the impact of the above legislation, Parentis has concluded that the consolidated goodwill has been impaired by $27 million.
Required:
Prepare the consolidated statement of financial position of Parentis as at 31 March 2007.

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Parentis Offspring $ million $million $ million $million Assets Property, plant and equipment (note (0) Investments 640 120 340 Intellectual property (note (@) 760 370 Parentis Offspning S million S million$million $ millon Current assets Inventory (note (i) Trade receivables (note (i) 76 84 nil 160 920 70 440 Total assets Equity and liabilities Equity shares of 25 cents each Retained earnings-1 April 2006 -year ended 31 March 2007 200 210 90 120 300 600 120 140 340 20 Non-current liabilities 10% loan notes Current liabilities Trade payables (note (ii) Current tax payable Overdraft Total equity and liabilities 130 57 23 25 200 920 80 440