P Ltd is an entity whose functional and presentational currency is the dollar ($). On 1 January 20*1, P Ltd acquired 80% of the share capital of S Ltd, an entity whose functional currency is the Franc. S Ltd's reserves at this date showed a balance of Fr 4,000. P Ltd paid Fr 21,000 for the investment in S Ltd. Below are the financial statements of P Ltd and S Ltd for the year ended 31 December 20*2. Statements of financial position at 31 December 20*2 Non-current assets Investment in S Ltd Current assets Equity Share capital Reserves Current liabilities Homework for Chapter 5 Revenue Operating expenses Profit from operations Financial costs Profit before tax Tax Profit for the year Other comprehensive income. Total comprehensive income Exchange rates have been as follows: 1 January 20*1 31 December 20*1 31 December 20*2 P Ltd $ 60,000 4,200 35,800 100,000 50,000 20,000 70,000 Statement of profit or loss and other comprehensive income for the year ended 31 December 20*2 P Ltd $ 25,000 (10,000) 15,000 (5,000) 10,000 (3,000) 7,000 30,000 100,000 7,000 S Ltd Fr 25,000 15,000 40,000 15,000 14,000 29,000 11,000 40,000 S Ltd Fr 10,000 (4,000) 6,000 (1,500) 4,500 (1,000) 3,500 3,500 Fr: $1 5 3 2 Average for the year ended 31 December 20*2 It is P Ltd's policy to measure NCI at fair value at the date of acquisition and the fair value of the non-controlling interest in S Ltd was deemed to be Fr 4,500 at this date. Goodwill had been reviewed for impairment as at 31. December 20*1 but none had arisen. At 31 December 20*2, it was determined that goodwill should be impaired by Fr 1,000. 2.5 Required: Prepare the consolidated statement of financial position and the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 20*2.