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My last hope, please help: Prepare the consolidated statement of changes in equity for P Ltd for the year ended 31 December 2021.

P has two group companies, S and A. The income statements for P, S and A for the year ended 31 December 2021 are given as follows:

Income statements for the year ending 31 December 2021

	P	S		A
	$	$		$
Sales	40,500,000		22,950,000		16,200,000
Cost of sales	(15,930,000)		(7,965,000)		(4,320,000)
Gross profit	24,570,000		14,985,000		11,880,000
Investment income	1,255,000		-		-
Management fee income	3,915,000		-		-
Administrative expenses	(2,738,250)		(3,795,000)		(2,790,000)
Distribution costs	(1,260,000)		(1,173,000)		(517,500)
Interest income	675,000		-		-
Interest expense	(135,000)		(243,000)		-
Profit before tax	26,281,750		9,774,000		8,572,500
Tax	(1,350,000)		(945,000)		(1,269,000)
Profit after tax	24,931,750		8,829,000		7,303,500

P Ltd acquired 60% of S Ltd on 1 January 2015 for $3,024,000, gaining significant influence over S Ltd. On this date, the share capital of S Ltd was $900,000 and the retained earnings of S Ltd was $1,845,000.

P Ltd acquired 25% of A Ltd for $2,700,000 on 1 January 2017, gaining partial influence over A Ltd. A Ltds share capital and reserves were $1,015,000 on 1 January 2017. The share capital of A Ltd is 180,000 50c shares.

The interest income in P Ltd includes interest income on its 80% holding of bonds issued by S Ltd. P Ltd acquired these bonds without any goodwill arising, on 1 January 2017. The interest expense recorded by S Ltd represents the interest on the full bond issue. All companies have accounted for interest income and interest expense correctly.

During the year S Ltd sold goods costing $27,000 to P Ltd for $189,000. 15% of this inventory is included in P Ltds inventory at the year end.

During the year A Ltd sold goods costing $81,000 to P Ltd for $108,000. 50% of this inventory is still in P Ltds inventory at the year end.

Goodwill is capitalised. Impairment of 30% of the value of the goodwill of S Ltd was recognised in 2019 and impairment of 50% of the value of the goodwill in A Ltd is recognised in 2021.

At the year-end P Ltd charges both S Ltd and A Ltd a management fee of 10% of turnover. The companies have accounted for the management fee correctly. The management fee income in P Ltd represents management fee income from S Ltd and A Ltd. S Ltd and A Ltd have accounted for management fee expenses under administrative expenses.

The investment income in P Ltd comprises of dividend income from both group and non-group companies.

The retained earnings brought forward as at 1 January 2021 and dividend expense for the year ended 31 December 2021 for P Ltd, S Ltd and A Ltd were as follows:

	P Ltd	S Ltd	A Ltd
	$	$	$
Retained earnings brought forward	21,720,000	2,700,000	1,800,000
Dividend expense	810,000	225,000	100,000

Required:

Prepare the consolidated statement of changes in equity for P Ltd for the year ended 31 December 2021.

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