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QUESTION $1[$CONSOLIDATED FINANCIAL STATEMENTS$][$IFRS$10]$

On $1$ Jan $2018,$ P Ltd acquired all the shares in S Ltd at R$52000.$ At that date, the balance on S Ltd$\text{'}$s retained earnings account amounted to R$12000.$ The share capital amounted to $R40000$ and no shares have been issued since that date.

The following are the condensed statements of financial position of $P$ Ltd and subsidiary S Ltd at $31$ December $2018$:

$\backslash$table$[[$STATEMENTS OF FINANCIAL POSITION AS AT $31$ DECEMBER $2018,,],[$ASSETS$,$P Ltd$,$S Ltd$],[,,],[$Property$,$ plant and equipment,,$],[$Investment in S Ltd: $4000$ shares at fair value,$41000,35000],[($cost price: R$56000),60000,-],[$Trade receivables,$29000,52000],[$Total assets,R$1300000,$R$87000],[$EQUITY AND LIABILITIES,$80000,40000],[$Share capital $(8000/4000$ shares$),4000,-],[$Mark$-$to$-$market reserve,$18000,18000],[$Retained earnings,$10000,2000],[$Long$-$term borrowings,$18000,27000],[$Trade and other payables,R$130000,$R$87000],[$Total equity and liabilities,,$],[$The statements of profit or loss and other comprehensive income of the two,$]]$

The statements of profit or loss and other comprehensive income of the two companiesfor the reporting period ended $31$ December $2018$ are as follows:

EXTRACT FROM THE STATEMENTS OF PROFIT OR LOSSAND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED $31$ DECEMBER $2018$

$\backslash$table$[[,$P Ltd$,$S Ltd$],[$Profit$,18500,10000],[$Dividend received,$3000,-],[$Profit before tax,$21500,10000],[$Income tax expense,$(5500),(3000)$

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