Intragroup transactions

Dear Tutor,
This is a question from Kaplan kit
Pike acquired 75% of the issued share capital of Salmon on 1 January 20X6 for $8,720,000. In
addition, Pike also invested in $1 million of Salmon’s 5% loan notes at par value. An extract
of the financial statements of Pike and Salmon as at 31 March 20X6 is presented below:

Pike ($000) Salmon ($000)
Equity and liabilities
Equity
Share capital 9,200 4,800
Retained earnings 12,480 1,290
Total equity 21,680 6,090
Non?current liabilities
5% loan notes 20X9 16,440 11,180
Current liabilities 2,640 1,410
Total 40,760 18,680

The following information is relevant to the preparation of the consolidated financial
statements:
(i) At acquisition, the fair value of land owned by Salmon exceeded its cost by $1,000,000.
This land was still owned at 31 March 20X6.
(ii) During the post?acquisition period, Salmon sold goods to Pike for $500,000, on which
it earned a margin of 10%. 80% of the goods remained in Pike’s inventory at the year
end. At 31 March 20X6 Salmon was still owed half of the total amount invoiced to Pike
for these goods.
(iii) The fair value of the non?controlling interest in Salmon at the date of acquisition was
$2,400,000.
(iv) For the year ended 31 March 20X6, Salmon made a profit after tax of $240,000.

You have now been provided with the following additional information relating to Pike and
Salmon as at 31 March 20X6:
Category Pike Salmon
Assets
Investments at cost
Non?current assets 26,280 13,670
Current assets 4,760 5,010
Total assets 40,760 18,680

Task 3
Complete the following table to state at what amount each of the following items should
be included in the consolidated statement of financial position at 31 March 20X6.
(5 marks)

(i) Non?current assets
(ii) Current assets
(iii) Current liabilities

Answer
NCA = 40950
Current asset = 9480 [ 4760+5010 – 250 – 40 purp ]
current liability = 3800 [ 2640 + 1410 – 250]

I was wondering why the Loan notes pike invested in salmon didnt have any impact here ?
isnt that also intra group transaction that needs elimination ?