Question 1 The draft financial statements for the year ended 31 March 2022 for P Ltd and S Ltd are as follows: The Statement of Financial Position of the three companies at 31 March 2022 were shown below: The following information is available: 1. P Ltd acquired 80% ordinary shares in S Ltd on 1 January 2020 when the retained earnings of S Ltd had credit balance of $1.27 million. 2. During the year, P Ltd sold goods with an invoice value of $800,000 to S Ltd. Of these goods with a value of $200,000 were in inventory with S Ltd on 31 March 2022 . The profit element is 20% of selling price for SLtd. 3. All dividends receivable from SLtd are not accounted for in the books of PLtd. 4. Goodwill is to be dealt with in line with HKFRS 3 'Business Combinations'. Review of the carrying amount of goodwill had been carried out and impairment by 25% should be provided. Required Prepare the consolidated statement of profit or loss and consolidated statement of financial position as at 31 March 2022 (40 marks) Question 1 The draft financial statements for the year ended 31 March 2022 for P Ltd and S Ltd are as follows: The Statement of Financial Position of the three companies at 31 March 2022 were shown below: The following information is available: 1. P Ltd acquired 80% ordinary shares in S Ltd on 1 January 2020 when the retained earnings of S Ltd had credit balance of $1.27 million. 2. During the year, P Ltd sold goods with an invoice value of $800,000 to S Ltd. Of these goods with a value of $200,000 were in inventory with S Ltd on 31 March 2022 . The profit element is 20% of selling price for SLtd. 3. All dividends receivable from SLtd are not accounted for in the books of PLtd. 4. Goodwill is to be dealt with in line with HKFRS 3 'Business Combinations'. Review of the carrying amount of goodwill had been carried out and impairment by 25% should be provided. Required Prepare the consolidated statement of profit or loss and consolidated statement of financial position as at 31 March 2022 (40 marks)