Fresno Group plc have prepared their financial statements for the year ended 31 January 19X4. However, the financial accountant of Fresno Group ple had difficulty in preparing the statements required by FRS 3: Reporting financial performance, and approached you for help in preparing those statements. The financial accountant furnished you with the following information:

Required:

(a) Prepare the following statements in accordance with current statutory requirements and FRS 3: Reporting financial performance for Fresno Group ple for the year ending 31 January 19X4:
(i) statement of total recognised gains and losses;
(ii) reconciliation of movements in shareholders’ funds;
(iii) analysis of movements on reserves;
(iv) note of historical cost profits and losses.

(b) Explain to the financial accountant:
(i) how the decision to close the subsidiary, Reno plc, affects the financial statements of Fresno Group plc for the year ended 31 January 19X4;
(ti) how the subsidiary, Reno plc, should be dealt with in the financial statements of Fresno Group plc for the year ended 31 January 19XS.

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(i) Fresno Group plc Profit and Loss Account extract for year ended 31 January 19X4 Operating profit - continuing operations Profit on sale of property in continuing operations Profit on ordinary activities before taxation Tax on ordinary activities Profit after taxation Dividends Retained profit for year million 290 10 300 (90) 210 (15) 195 The financial accountant did not provide for the loss on any discontinued operations in the profit and loss account. (However, you may assume that the taxation provision incorporated the effects of any provision for discontinued operations.) (ii) The shareholders' funds at the beginning of the financial year were as follows: Share capital - 1 ordinary shares Merger reserve Revaluation reserve Profit and loss reserve million 350 55 215 775 1,395