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penition at 31 March 2011 and statements of profit or los the year ended 31 March 2021 for the entities are given below. Statements of financial position as at 31 March 2021 Notes Non-current Assets Toon tony Plat Property, plant and equipment ROOG ROOD ROOO Investments 17,370,000 Ordinary shares w) 50050 30450 28,942 in loow at cost 3,980,000 Ordinary shares in Plat al cost 00:00:(W) 35,610 Current Assets (iv) 8,000 Inventory 93,660 30.450 Trade receivables 28,942 Cash and cash equivalents (v) 34.910 9,310 2.50 38,790 16,530 Total Assets Ivil) 2,660 5,010 1.480 78,710 27, 320 Equity and Liabilities 318 Equity shares of Ri each 5,558 172,370 57,770 Share premium 34,500 Retained earnings 112,620 17,370 15,920 0 3,470 0 15,630 10,650 Non-current was 3,590 128,250 31,490 Long term borrowings 19,510 Current liabilities 32,000 15,000 Trade payables 9,140 Loan interest payable 11,320 10,830 5,530 800 450 Total equity and liabilities 320 12,120 11,280 5,850 172,370 57,770 Summarised statements of profit or loss for the year ended 31 March 2021 34,500 Toon Loony Plat Revenue ROOO ROOO ROOO Cost of sales Gross profit 130,000 67,410 31,890 (75,470) (40,470) (18,920) 54,530 26,940 12,970 (37,660) (20,230) 19.460) Expenses Finance cost 16,870 6,710 3.510 (1.600) (900 1640) Income tax expense 15,270 5,810 2,870 Profit for the year (3,050) (1,160) (580) 12,220 4,650 2,290 Additional Information: (0) Toon acquired all of Loony's equity shares on 1 April 2019 in a share for share exchange. The agreed purchase consideration was R35,610,000, Loony's retained earnings were R3,000,000 on 1 April 2019, (1) The falr value of Loony's property, plant and equipment on 1 April 2019 exceeded its carrying value by R1,200,000. The excess of fair value over carrying value was attributed to buildings owned by Loony. At the date of acquisition these buildings had a remaining useful life of 12 years. Toon's accounting policy is to depreciate all property, plant and equipment using the straight line basis with no residual value. (1) Toon carried out an impairment review of the goodwill arising on acquisition of Loony and found that as at 31 March 2021 the goodwill had NOT been impaired but had actually increased in value by R50,000. (iv) Toon purchased its shareholding in Platon 1 April 2020 for R8,000,000. The fair value of Plat's net assets was the same as its carrying value at that date. Toon exercises significant influence over aspects of Plat's financial and operating policies. (v) Toon occasionally trades with Loony. During February 2021 Toon sold Loony goods for R960,000 Loony had not paid for the goods by 31 March 2021. Toon uses a mark-up of 331/3% on cost. 20% of the goods had been sold by Loony at 31 March 2021 (vi) Toon sold a plece of machinery to Loony on 1 April 2020 for R115,000. The machinery had previously been used in Toon's business and had been included in Toon's property, plant and equipment at a carrying value of R90,000 Toon had recognised the profit on disposal in revenue The machinery had a remaining useful life of years on 1 April 2020. (vii) Loony transferred R115,000 to Toon on 31 March 2021 which was not recorded by Toon until April 2021 Required: (a )Explain how a post acquisition increase in goodwill, for example in note (1) above, should be treated in consolidated financial statements. (2 marks) (b) Prepare the consolidated statement of financial position for Toon as at 31 March 2021, in accordance with the requirements of International Financial Reporting Standards. (23 marks)