Lowestoft plc acquired 70% of the issued share capital of Galgate Ltd on 1 April 2016 for €2,800,000. At that date, Galgate Ltd had issued share capital of €2,000,000 and retained profits were €280,000. Extracts from the statements of financial position for the 2 companies one year later at 31 March 2017 are as follows:

	Lowestoft plc.	Galgate Ltd
	€'000	€'000
Assets:
Investment in Galgate Ltd	2,800
Non-current assets	4,700	1,530
Current assets	2,400	2,090
Total assets	9,900	3,620
Equity:
Share capital	3,000	2,000
Retained profits	5,200	540
Total equity	8,200	2,540
Liabilities:
Non-current liabilities	600	480
Current liabilities	1,100	600
Total liabilities	1,700	1,080
Total equity and liabilities	9,900	3,620

Additional data

• Included within the current assets of Lowestoft plc. and in the current liabilities of Galgate Ltd is an intra-group transaction for €200,000 that took place in early March 2017.
• Lowestoft plc. has decided non-controlling interest will be valued at their proportionate share of net assets

Required:

Prepare the consolidated statement of financial position for Lowestoft plc. and its subsidiary undertaking at 31 March 2017.

Answer rating: 100% (QA)

Consolidates Statement of Financial Position at 31 March 2017 Assets 000 Noncurrent assets 47001530 ... View the full answer