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QUFSTION I The Statements of Financial Position of Stephen, a specialis sports gosds sctaler, and rwe enoties in which it holds substantial investments are showan below as at 31 Manch 2020. The following notes to the Siatements of Financial Position mast be coesiderod Note 1 Investment by Stephen in Hannaly, a. On 1 Apeil 2017, Stepeen purchused GHez millisa loan aches in Hannab at pur. b. On 1 April 2018, Stephen porchased 4 million of the ondinary shares in Hamah for GHe7. 5 million in cach, when Hantab's reserves were GHe1s millice. Al this deee the sures of Hannah had a market price of GHel.50 each. A1 the date of acquistion of the shares. Hatalt's property and plant incloded land reconded at a cost of Gilic920,000. At the dite of acquitions, the fair valoe of the land was GHe1,115,000. No other adjustments in repect of fier balse were required to Hannah's assets and labilities upen acperisition. Hannah has not nocerdiod the fair value in its can accounting reconds. c. On I Oclober 2019, Strphen acquired I million shares in Esther, a sports poods matufictarer, when the reserves of Esther weet GHie3.9 miltion. The purchase considention was GHic4.4 million. Sisce the acquisition, Sicphen has had the righe so appoint two of the flve diressers of Fisther and can exercise significant inflornce ever Father. d. No fair value adjastments were required in respect of Eather's assts er liablities opon acquisition. c. Mannah supplies cricket bats to Suephen. On 31 Marth 2080 Stepten's imserteries inclabed bats purchased at a total cost of GHet million from Hannah. Hannah's mark-up en huss is 25%. Required: (a) Explain, nith reasoas, bow the investments in Hasnah aad Esther will be treated in the consolidated finaecial staterients of the Stephen greup. (5 marks) (b) Prepare the Cansolidated Statement of Financial Position for the Stephes groop at 31 Mareh 2020. Full w orkings should be shown. (2e) marks) QUFSTION I The Statements of Financial Position of Stephen, a specialis sports gosds sctaler, and rwe enoties in which it holds substantial investments are showan below as at 31 Manch 2020. The following notes to the Siatements of Financial Position mast be coesiderod Note 1 Investment by Stephen in Hannaly, a. On 1 Apeil 2017, Stepeen purchused GHez millisa loan aches in Hannab at pur. b. On 1 April 2018, Stephen porchased 4 million of the ondinary shares in Hamah for GHe7. 5 million in cach, when Hantab's reserves were GHe1s millice. Al this deee the sures of Hannah had a market price of GHel.50 each. A1 the date of acquistion of the shares. Hatalt's property and plant incloded land reconded at a cost of Gilic920,000. At the dite of acquitions, the fair valoe of the land was GHe1,115,000. No other adjustments in repect of fier balse were required to Hannah's assets and labilities upen acperisition. Hannah has not nocerdiod the fair value in its can accounting reconds. c. On I Oclober 2019, Strphen acquired I million shares in Esther, a sports poods matufictarer, when the reserves of Esther weet GHie3.9 miltion. The purchase considention was GHic4.4 million. Sisce the acquisition, Sicphen has had the righe so appoint two of the flve diressers of Fisther and can exercise significant inflornce ever Father. d. No fair value adjastments were required in respect of Eather's assts er liablities opon acquisition. c. Mannah supplies cricket bats to Suephen. On 31 Marth 2080 Stepten's imserteries inclabed bats purchased at a total cost of GHet million from Hannah. Hannah's mark-up en huss is 25%. Required: (a) Explain, nith reasoas, bow the investments in Hasnah aad Esther will be treated in the consolidated finaecial staterients of the Stephen greup. (5 marks) (b) Prepare the Cansolidated Statement of Financial Position for the Stephes groop at 31 Mareh 2020. Full w orkings should be shown. (2e) marks)

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