The following are the financial statements of the parent company Alpha plc, a subsidiary company Beta and an associate company Gamma.
Statements of financial position as at 31 December 20X9
| Alpha | Beta | Gamma | |
| ASSETS | £ | £ | £ |
| Non-current assets | |||
| Land at cost | 540,000 | 256,500 | 202,500 |
| Investment in Beta | 216,000 | ||
| Investment in Gamma | 156,600 | ||
| Current assets | |||
| Inventories | 162,000 | 54,000 | 135,000 |
| Trade receivables | 108,000 | 72,900 | 91,800 |
| Dividend receivable from Beta | 12,420 | ||
| Current account – Beta | 10,800 | ||
| Current account – Gamma | 13,500 | ||
| Cash | 237,600 | 62,100 | 67,500 |
| Total current assets | 544,320 | 189,000 | 294,300 |
| Total assets | 1,456,920 | 445,500 | 496,800 |
| EQUITY AND LIABILITIES | |||
| £1 shares | 540,000 | 67,500 | 27,000 |
| Retained earnings | 769,500 | 329,400 | 391,500 |
| 1,309,500 | 396,900 | 418,500 | |
| Current liabilities | |||
| Trade payables | 93,420 | 24,300 | 59,400 |
| Dividends payable | 54,000 | 13,500 | 5,400 |
| Current account – Alpha | — | 10,800 | 13,500 |
| Total equity and liabilities | 1,456,920 | 445,500 | 496,800 |
On 1 January 20X5 Alpha plc acquired 80% of Beta plc for £216,000 when Beta plc’s share capital and reserves were £81,000, and 30% of Gamma Ltd for £156,600 when Gamma Ltd’s share capital and reserves were £40,500. The fair value of the land at the date of acquisition was £337,500 in Beta plc and £270,000 in Gamma Ltd. Both companies have kept land at cost in their statement of financial position. All other assets are recorded at fair value. There have been no further share issues or purchases of land since the date of acquisition.
At the year end, Alpha plc has inventor y acquired from Beta plc and Gamma Ltd. Beta plc had invoiced the inventor y to Alpha plc for £54,000 – the cost to Beta plc had been £40,500 and Gamma Ltd had invoiced Alpha plc for £13,500 – the cost to Gamma Ltd had been £8,100. Goodwill has been impaired by £52,650. The whole of the impairment relates to Beta.
Non-controlling interests are measured using method 1.
Required:
Prepare Alpha plc’s consolidated statement of financial position as at 31.12.20X9.
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