QUESTION ONE:  The information below relates to sail and its subsidiary wave. 31st December 2015 SAIL UShs’000 SAIL UShs’000 WAVE UShs’000 WAVE UShs’000 Non- current assets         Property plant and equipment 350   95   Fixtures 150   55   Investment         In subsidiary 250 750 0 150 Current assets         inventory 210   75   Receivables 155   155   Bank 150 515 0 230 Share capital (shs 1 shares)   800   170           Retained earnings   150   65 Current liabilities         Payables 295   75   Bank overdraft 20 315 70 145       The following is relevant; Group policy is to measure non – controlling interests at fair value. The fair value of the shares of wave at the point of acquisition was UShs 1.20. Sail purchased 75% of the issued share capital of wave four years ago, when the retained earnings of wave were UShs 20,000. There has been no impairment of goodwill. At the point of acquisition all net assets of wave were at fair value with the exception of an item of plant with a fair value of UShs 15,000 in excess of its carrying amount. The remaining useful life at the point of acquisition was 5 years. In the post-acquisition period Sail sells goods to Wave at a constant mark-up 0f 25%. At 31st December 2015 UShs 60,000 of goods sold to wave are in inventory Intergroup balance show confirmed payable and receivable balances of UShs 20,000 at the reporting date. Required:Prepare the consolidated statement of financial position as at 31st December 2015.