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The statement of financial position of A plc and B ltd as at 31 December 20X7 are as follows.

A plc B ltd
£ £

Assets
Non-current assets
Property, plant and equipment 145,000 50,000
Investments 53,000 ‘
198,000 50,000
Current assets
Inventories 40,000 30,000
Trade receivables 45,000 20,100
Cash at bank 17,000 9,900
102,000 60,000

Total assets 300,000 110,000

Equity and liabilities
Equity
Ordinary shares (£1 each) 100,000 40,000
Retained earnings 90,000 32,000
190,000 72,000

Non-current liabilities
5% Long-term loans 70,000 20,000

Current liabilities
Trade payables 40,000 18,000

Total equity and liabilities 300,000 110,000
Additional information:

1. The investment by A plc in B ltd was as follows.

£
30,000 ordinary shares of £1 each 44,000
5% Long-term loans 9,000
53,000

The ordinary shares were acquired when the retained earnings of B ltd were £12,000. Since acquisition, there has been no impairment of goodwill.

2. A remittance of £1,500 sent by A plc to B ltd on 30 December 20X7 was not recorded in the books of B ltd until 4 January 20X8.

3. Goods had been sold at normal selling price by B ltd to A plc during the year. The total sales of such goods during the year were £80,000. The inventory of A plc at 31 December 20X7 contained goods purchased from B ltd at a selling price of £16,000. B ltd earns 20% profit margin on its sales to A plc.

4. At the year-end there was no liability outstanding in respect of loan interest payable.

5. The trade receivables of B Ltd includes £2,500 owed by A plc and the trade payables of A plc includes £1,000 owed to B ltd.

6. It is the group’s policy to value non-controlling interest at acquisition at its fair value. The non-controlling interest was valued at £14,667 on 31 December 20X7.

Required:
Prepare a consolidated statement of financial position for A plc at 31 December 20X7.

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