group accounts

hello i have this exercise which im trying my best but i am lost. can somebody here please help me (Urgent)

On 1 January 2016 Port Louis Ltd. acquired 75% of the ordinary shares in St. Croix Ltd. and 350,000
ordinary shares in Abercrombie Ltd. As at 30 June 2016 the accountant at Port Louis Ltd. had not
recorded any of the above acquisition in the books. The purchase considerations were:
A. For shares acquired in St. Croix Ltd:
1) Issued and exchanged 3 shares for every 5 shares acquired in St. Croix Ltd. The market price
of Port Louis Ltd. and St. Croix Ltd. on 1 January 2016 were $61 per share and $56 per share
respectively , and
2) Cash payment of $25 per share due on 1 July 2019
B. For shares bought in Abercrombie Ltd:
a. immediate cash payment of $58 per share, and a
b. Deferred consideration of $ 10 million payable in 5 year time.
The summarised statement of financial position and statement of profit and loss for the 3 companies are
given below:
Statements of financial position as at 30 June 2016.
Port Louis Ltd. St. Croix Ltd Abercrombie Ltd
USD 000 USD 000 USD 000
ASSETS
Non-current assets 420,000 150,000 70,000
Current assets 35,000 10,000 10,000
TOTAL ASSETS 455,000 160,000 80,000
EQUITY AND LIABILITIES
Shareholders’ equity
Share capital of $10 each 35,000 20,000 10,000
Retained earnings 315,000 80,000 60,000
Total equity 350,000 100,000 70,000
Non-current liabilities 50,000 50,000 5,000
Current liabilities 55,000 10,000 5 ,000
Total Liabilities 105,000 60,000 10,000
TOTAL EQUITY & LIABILITIES
455,000 160,000 80,000

Statements of profit and loss for the year ended 30 June 2016
Port Louis Ltd. St. Croix Ltd Abercrombie Ltd
USD 000 USD 000 USD 000
Sales 325,000 200,000 70,000
Cost of sale (205,000) (152,000) (40,000)
Gross profit 120,000 48,000 30,000
Operating expenses (85,000) (30,000) (32,000)
Operating profit 35,000 18,000 (2,000)
Interest expense (5,000) (4,000) (2,000)
Profit before tax 30,000 14,000 (4,000)
Income tax charge (5,000) (4,000) (1,000)
Net Profit / (Loss) 25,000 10,000 (5,000)
The following information is relevant:
(i) For many years St. Croix Ltd. has been trading some of its product under the brand name of
“Plaine Vertes”. At the date of acquisition, the directors of Port Louis valued this brand at $ 10
million with a remaining useful life of 10 years. The brand is not included in the St. Croix Ltd.
statement of financial position.
(ii) At acquisition the fair value of St. Croix Ltd. plant exceeded its book value by $ 5 million. The
plant had a useful life of 5 years.
(iii) Port Louis Ltd. policy is to value the non-controlling interest at fair value at the date of
acquisition.
(iv) St Croix Ltd. generates 40% of all its income and expenses during the first half of its financial year.
Whereas, Abercrombie Ltd. generates 65% of all its income and expense during the first half of
its financial year.
(v) Sales from St. Croix Ltd. to Port Louis Ltd. throughout the second semester of the year had
consistently been $ 500,000 per month. St. Croix Ltd. charged a margin of 20% on these sales.
Port Louis Ltd. had $ 1 million of these goods in inventory as at 30 June 2016.
(vi) During the quarter ended 30 June 2016, Abercrombie Ltd. sold goods which it bought at $1
million for $1.2 million to Port Louis Ltd. 20% of these goods remained unsold in Port Louis Ltd.
inventories on 30 June 2016.
(vii) On 30 June 2016 Port Louis Ltd. accounts showed a trade payable of $ 1.5 million from St. Croix
Ltd. St. Croix Ltd. recorded a payment of $ 0.5 million on 30 June 2016 which reached Port Louis
Ltd.’s bank account on 5 July 2016. Both companies have positive cash balances.
(viii) The cost of capital applicable to Port Louis Ltd. is 10%. The interest expenses of Port Louis Ltd. do
not include the finance cost on the deferred considerations.
(ix) Although St. Croix Ltd. has been profitable since its acquisition by Port Louis Ltd., the market for
St. Croix Ltd. products has been badly hit in recent months and the directors estimate that the
goodwill has been impaired by Rs. 3 million as at reporting date.
(x) During the year Port Louis Ltd. directors estimated that its investment in Abercrombie Ltd. was
impaired by $ 0.5 million. There was no prior impairment charge which accounted by Port Louis
Ltd.
(xi) Ignore any effect of taxation.

Required:
a. Explain the accounting treatments relevant to an investor for each major classes of investments in
equity instruments.
b. Prepare the:
(i) corrected statement of financial position and statement of profit and loss for Port Louis
Ltd.
(ii) the consolidated statement of profit and loss for the Port Louis Group for the year-ended
30 June 2016.
(iii) the consolidated statement of financial position for the Port Louis Group as at 30 June
2016.