Porridge acquired 70% of Sugar for €93million several years ago when the fair value of the net assets of Sugar amounted to €120million. For the purposes of calculating Goodwill, the non-controlling interest was measured at the acquisition date as a proportion of the value of net assets.

On 1 April 2016, Porridge disposed of its full shareholding in Sugar for consideration of €131 million. The net assets of Sugar were €171 million at1 January 2016 and €183 million on 31 December 2016.

The statements of profit or loss of Porridge and Sugar for the year ended 31 December 2016 were as follows:

	Porridge €m	Sugar €m
Revenue	126.4	31.2
Cost of Sales	-43.2	-10.8
Gross Profit	83.2	20.4
Distribution Costs	-18.9	-1.8
Administrative Expenses	-17.2	-2.6
Profit on Disposal	38	0
Operating Profit	85.1	16
Finance Costs	-10.2	-1.2
Profit before Tax	74.9	14.8
Taxation	-15	-2.8
Retained profit for the year	59.9	12

Note:

• No dividends were paid by either company in the year
• Neither company had any other comprehensive income
• Goodwill in Sugar was impaired by 50% several years ago
• The income and Expenses of Sugar have accrued evenly over 2016
• Prior to disposal of goods were sold to Porridge by Sugar for €3 million. These were purchased by Porridge on a just in time basis and all were sold onto third parties immediately.

Required:

Prepare the consolidated statement of profit or loss for the year ended 31 December 2016. You should ignore any tax implications of the sale of Sugar.

On 1 April 2015 Panther acquired 4 million of Staunton’s equity shares paying €4.50 cash each, at which time the retained earnings of Staunton were €8.4 million. The market price of each Staunton share at the date of acquisition was €4.00 each.

Statement of financial position of the two companies at 31 March 2018 were as follows:

	Panther €000	Staunton  €000
Non-current assets
Land and Buildings	22,000	12,000
Plant and Equipment	20,450	10,220
Investments	18,500	0
	60,950	22,220
Current Assets
Inventory	9,850	6,590
Receivables	11,420	3,830
Cash and Bank	490	0
Total Assets	82,710	32,640
Equity
Equity Shares of €1 each	10,000	5,000
Retained Earnings	51,840	16,580
	61,840	21,580
Current Liabilities
Bank	0	570
Payables	17,600	7,810
Tax	3,270	2,680
Total Equity and Liabilities	82,710	32,640

The following information is relevant:

1. Included in the land and buildings of Staunton is a large area of development land, carried at its cost of €5million. Its fair value at the date Staunton was acquired was €7 million and y 31 March 2018 this had risen to €8.5 million. The group valuation policy for the development of land is that it should be carried at fair value and not depreciated.

2. Also at the date of Staunton’s acquisition, the plant and equipment included a plant that had a fair value of €4 million in excess of its carrying amount. This plant had a remaining life of 5 years at that date. The group calculates depreciation on a straight-line basis. The fair value of Staunton’s other net assets approximated to their carrying amount.

3. The balance on the current accounts of the parent and subsidiary included in receivables and payables was agreed at €240,000 on 31 March 2018.

4. An impairment test on 31 March 2018 concluded that Goodwill was impaired by €1.5 million.

Prepare the consolidated statement of financial position to the Panther Group on 31 March 2018, assuming the non-controlling interest is measured using the fair value method.