The summarized statements for the year ended 31 December 2007 for Mat, Rug and P entities are as follows:
Statements of comprehensive income for the year ended 31 December 2007

The following information is also available:

(i) Dividends paid out of earnings for the year 31 December 2007 were as follows: Mat £600 000, Rug £550 000, Pet £440 000. The appropriate shareholders have received all these dividends. Mat has included its share in 'Revenue' on the statement of comprehensive income.
(ii) Mat acquired an 80% share in Rug and a 60% share in Pet on 1 January 2007. The fair values of Rug's assets at that date equalled those shown on the statement of financial position. As at 1 January 2007 the fair value of Pet's property was £750 000 in excess of the statement of financial position value. Mat, Rug and Pet all depreciate their property, plant and equipment on the same basis. Property is depreciated on a straight line basis over 50 years.
(iii) As at 31 December 2007 the fair value of the consolidated goodwill in Rug was reviewed and found to have a value 10% less than its carrying value at the consolidation date. This impairment is to be accounted for in the consolidated accounts. Any negative goodwill is to be taken to the statement of comprehensive income.
(iv) Intergroup sales (Mat to Rug) in the period from 1 January 2007 to 31 December 2007 are £6 200 000 on which Mat made a profit of 15% on selling price. Of these goods £1 000 000 (at selling price from Mat to Rug) are still in Rug's closing inventory amount.
Required:
Prepare the consolidated statement of comprehensive income for the year ended 31 December 2007 and the consolidated statement of financial position as at that date for the group.

Mat 23 500 (15 400) 8 100 (4 600) 3 500 11 700 (8 700) 3 000 1 800) 8 900 (6 800 2 100 Revenue Cost of sales Expenses Profit before tax Tax Profit for the year 1 200 1 200 1 700 Mat 2000 Rug 2000 2000 ASSETS NON-CURRENT ASSETS Property, plant and equipment Investment in Rug Investment in Pet 1 760 7 030 2 680 2 130 10 570 2 130 1760 CURRENT ASSETS Inventory Trade receivables Cash 4g0 1 230 1 100 430 2 760 3 330 570 190 760 2 890 110 1 160 2 920 TOTAL ASSETS EQUITY AND LIABILITIES EQUITY Ordinary shares Share premium Retained earnings 300 700 130 2 130 1 450 110 340 900 2 900 6 780 10 380 NON-CURRENT LIABILITIES Loans CURRENT LIABILITIES Trade payables Bank overdraft Tax 760 340 1 200 2 190 13 330 120 70 230 420 2 890 500 TOTAL EQUITIY AND LIABILITIES 2 920