Help me where i went wrong with this consolidation question

Hi FR tutor. kindly help me with this question. i have attempted it but it is not balancing. Help me to check were i went wrong. I have included the question and my attempt is at the bottom of the question(below)….Kindly help balance the Group SFP for me. I will highly appreciate

Question is as follow:

The Apple group consist of the parent company, Apple Ltd and its subsidiary companies, Blue
Ltd and Colt Ltd.

Statement of financial position as at 28 February 2022
Apple Ltd Blue Ltd Colt Ltd

N$’000 N$’000 N$’000
Non-current assets
Property plant and equipment 3,295,000 2,000,000 1,200,000
Investments in Blue – at cost 1,675,000
Investments in Colt – at cost 700,000
Current assets
Inventories 450,000 500,000 150,000
Accounts receivable 335,000 261,000 –
Bank 200,000 100,000 –
TOTAL ASSETS 6,655,000 2,861,000 1,350,000

Equity and liabilities
Share Capital N$2 shares 850,000 1,020,000 600,000
Retained earnings 3,340,000 980,000 350,000
Other components of equity 250,000 80,000 40,000

Non-current liabilities
Long-term loan 1,895,000 675,000 200,000
Current liabilities
Accounts payable 320,000 106,000 120,000
Bank overdraft – – 40,000
TOTAL EQUITY AND LIABILITIES 6,655,000 2,861,000 1,350,000

Acquisition of Blue Ltd
On 1 March 2019, Apple acquired 30% of the ordinary shares of Blue for a cash consideration
of N$600 million when the fair value of Blue’s identifiable net assets was N$1,840 million.
Apple treated Blue as an associate and has equity accounted for Blue up to 1 March 2021.
Apple’s share of Blue’s undistributed profit amounted to N$90 million and its share of a
revaluation gain amounted to N$10 million. On 1 March 2021, Apple acquired a further 40%
of the ordinary shares of Blue for a cash consideration of N$975 million and gained control of
the company. The cash consideration has been added to the equity accounted balance for
Blue at 1 March 2021 to give the carrying amount at 28 February 2022.

At 1 March 2021, the fair value of the equity interest in Blue held by Apple before the business
combination was N$705 million and the fair value of the non-controlling interest of 30% was
assessed as N$620 million. The retained earnings and other components of equity of Blue at
1 March 2021 were N$900 million and N$70 million respectively. It is group policy to measure
the non-controlling interest at fair value. A non-depreciable land in the books of Blue was
undervalued by 266 million on 1 March 2021.

At the time of the business combination with Blue, Apple had included in the fair value of Blue’s
identifiable net assets, an unrecognized contingent liability of N$6 million in respect of a
warranty claim in progress against Blue. In June 2021, there was a revision of the estimate of
the liability to N$5 million. The amount has met the criteria to be recognized as a provision in
current liabilities in the financial statements of Blue and the revision of the estimate is deemed
to be a measurement period adjustment.

Apple had commissioned an independent valuation of a building of Blue which was not
complete at 1 March 2021 and therefore not considered in the fair value of the identifiable net
assets at the acquisition date. The valuations were received on 1 July 2021 and resulted in a
decrease of N$40 million in the fair value of property, plant and equipment at the date of
acquisition. This decrease does not affect the fair value of the non-controlling interest at
acquisition and has not been entered into the financial statements of Blue. Buildings are
depreciated on the straight-line basis and it is group policy to leave revaluation gains on
disposal in equity. The building had a remaining useful life of 20 years at 1 March 2021
Acquisition of Colt Ltd

On 1 March 2021, Apple acquired 80% of the equity interests of Colt, a private entity, in
exchange for the following consideration:
? Cash payment of N$300 million
? Transfer of a building to previous shareholders. The carrying amount of the building at
1 March 2021 was N$200 million while as the fair value fair value was N$250 million.
? Apple will pay an additional N$181.5 million to the previous shareholders after 2 years.

Because the former shareholders of Colt needed to dispose of the investment quickly, they
did not have sufficient time to market the investment to many potential buyers. The fair value
of the identifiable net assets was N$960 million. Apple determined that the fair value of the
20% non-controlling interest in Colt at that date was N$250 million. Apple reviewed the
procedures used to identify and measure the assets acquired and liabilities assumed and to
measure the fair value of both the non-controlling interest and the consideration transferred.
After that review, Colt determined that the procedures and resulting measures were
appropriate. The retained earnings and other components of equity of Colt at 1 March 2021
were N$300 million and N$40 million respectively. The excess in fair value is due to an
unrecognized franchise right, which Apple had granted to Colt on 1 March 2013 for five years.
At the time of the acquisition, the franchise right could be sold for its market price.
Additional information
? Ignore tax
? Assume an appropriate discount rate of 10%
? It is the policy of Apple Group to measure the non-controlling interest at their fair value.
? All goodwill arising on acquisitions has been impairment tested with no impairment
being required.

Requirement: Prepare the consolidation the consolidated statement of financial position for
the Apple Group for the year ended 28 February 2022.

MY ATTEMPT TO THIS QUESTION IS AS FOLLOW

Apple group
Consolidated statement of financial position
For the year ended 28 February 2022

Non-current assets
Property, plant & equipment (3 295 000 000 6 723 000 000
+2 000 000 000 + 1 200 000 000-40 mil+ 2 mil+266mil)
Goodwill (W.3) 73 000 000
Current assets
Inventories (450 000 000 + 500 000 000 +150 000 000) 1 100 000 000
Accounts receivable (335 000 000 +261 000 000) 596 000 000
Bank (200 000 000 + 100 000 000) 300 000 000
Total assets 8 564 000 000

Equity & liabilities
Share capital 850 000 000
Retained earnings (W.5) 3 413 700 000
Other component of equity 250 000 000
NCI (W.4) 903 300 000

Non-current liabilities
Long-term loan (1 895 000 000 + 675 000 000 + 2 770 000 000
200 000 000)

Current liabilities
Accounts payable (320 000 000+106 000 000 +120 000 000) 546 000 000
Deferred consideration (150 000 000 + 15 000 000) 165 000 000
Bank overdraft 40 000 000

Total equity & liabilities 8 790 000 000

WORKINGS

2. Calculations of the net assets of subsidiaries at fair value
2.1 Blue Ltd
At acquisition At reporting date Post acquisition
Share capital 1 020 000 000 1 020 000 000
Retained earnings 900 000 000 980 000 000
Other comp. of equity 70 000 000 80 000 000
Non depreciable land 266 000 000 266 000 000
Contingent liability 1 000 000
Fair value adjustm. (40 000 000) (40 000 000)
Fair value depreciation 2 000 000
2 217 000 000 2 308 000 000 91 000 000

2.2 Colt Ltd
At acquisition At reporting date Post acquisition
Share capital 600 000 000
Retained earnings 350 000 000
Other comp. of equity 40 000 000
Franchise right disposal
960 000 000 990 000 000 30 000 000

3. Goodwill calculations
3.1 Blue Ltd

Apples Ltd’s holding (investment) at fair value
– Cost of additional investment 975 000 000
– Fair value of existing interest 705 000 000
NCI value at acquisition date 620 000 000
= 2 300 000 000
Less Fair value of net assets at acquisition date(W 2.2.1) (2 217 000 000)
Goodwill at acquisition = 83 000 000

3.2 Colt Ltd
Apples Ltd’s holding (investment) at fair value
– Cash payment 300 000 000
– FV of building transferred 250 000 000
– Deferred payment at PV(181.5mil x 0.826446281) 150 000 000
NCI value at acquisition date 250 000 000
= 950 000 000

Less Fair value of net assets at acquisition date (W 2.2.2) (960 000 000)
Gain from bargain at acquisition = -10 000 000

Total goodwill: 83 000 000 – 10 000 000 = 73 000 000

4. NCI calculations
4.1 Blue Ltd

NCI value at acquisition 620 000 000
NCI % share of post-acquisition 27 300 000
(91 000 000 x 30%)
= 647 300 000

4.2 Cold Ltd
NCI value at acquisition 250 000 000
NCI % share of post-acquisition 6 000 000
(30 000 000 x 20%)
= 256 000 000

Total NCI: 647 300 000 + 256 000 000 = 903 300 000

5 Group retained earnings calculation
5.1 Blue Ltd
Apple Ltd’s retained earnings 3 340 000 000
Apple Ltd’s % of post-acquisition
Blue: (91 000 000 x 70%) 63 700 000
Colt Ltd (30 000 000 x80%) 24 000 000
Finance cost on deferred payment(150 mil x 10%) (15 000 000)
Gain from bargain purchase 1 000 000
Depreciation 2 000 000
= 3 415 700 000