When Alpha acquired the whole of Beta’s equity on 1 January 2011, Beta’s retained earnings were £100. The Statements of financial position of both companies, a year later, include the items reported. Inventory reported by Beta includes £40 goods invoiced to it by Alpha. Alpha had purchased these goods for £30.

Required: 

How will the inventory and the consolidated retained earnings be reported on the Consolidated Statement of financial position of the Alpha group as at 31 December 2011?

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Statements of financial position as at 31.12.2011 Inventory Retained earnings Alpha Beta 4 540 398 41 420 240