non-current assets of Pea Ltd was recorded at $200000 below its fair value. The directors of Pear Ltd have decided that the revaluation of this parcel of land should be recognised in the accounting records of Pea Ltd. The statements of financial position of both entities, before any of the above transactions and events have been recorded are as follows: Statements of financial position as at 1 July 20X9 Pear Ltd $000 Pea Ltd S000 Assets Current assets Other current assets 1500 900 Tatal current assets 1500 900 Non-current assets Property, plant and equipment 2500 1200 Tatal non-current assets 2500 1200 Total assets 4000 2100 Liabilities Current iabilities Trade and other payables 1200 1000 Tatal current liabilities 1200 1000 Total liabilities 1200 1000 Net assets 2800 1100 Equity Issued capital 2000 700 Retained eamings B00 400 Total equity 2800 1100 ADDITIONAL INFORMATION • As the fair value of the non-controlling interest in Pea Ltd was the same as the non- controlling interest proportionate share of its identifiable net assets at acquisition date, the directors of Pear Ltd have elected to use the proportionate interest goodwill method to measure non-controlling interest in Pea Ltd. • The directors of Pear Ltd are of the opinion an impairment loss will not be recognised in relation to its investment in Pea Ltd in its separate or consolidated financial statements at 1 July 20X9. REQUIRED (a) Record the above transactions and events in the accounting records of the respective entities at 1 July 20X9. The corporate income tax rate is 30%. E5.4 Consolidation at date control, fair value adjustment in subsidiary financial statements, NCI allocation using memorandum account with proportionate interest goodwill method (Sections 5.3 and 5.4.3) On 1 July 20X9 Pear Ltd gained control of Pea Ltd by purchasing 75% of that entity's issued voting shares for a consideration of $1.2million. This consideration comprised cash of $400 000 and 400 000 fully paid ordinary shares at an agreed market value of $2 each. The directors of Pear Ltd determined that at the date control was obtained, a parcel of land included in the Accounting for Corporate Combinations and Associations right Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2017-9781488611520 – Arthur/Accounting for Corporate Combinations and Associat non-current assets of Pea Ltd was recorded at $200000 below its fair value. The directors of Pear Ltd have decided that the revaluation of this parcel of land should be recognised in the accounting records of Pea Ltd. The statements of financial position of both entities, before any of the above transactions and events have been recorded are as follows: