The statements of financial position of AA Ltd and BB Ltd as at 30 April 2018 are as follows:

The following information is relevant:

(i) AA Ltd acquired the entire share capital of BB Ltd on 30 April 2014. There have been no changes in the share capital of BB Ltd since then.

(ii) On 30 April 2014, the fair value of BB Ltd's non-current assets was ?500,000, as compared with their book value on that date of ?320,000. This revaluation has not been reflected in the books of BB Ltd.

(iii) On 30 April 2014, the retained earnings of BB Ltd were ?195,000.?

(iv) Goodwill arising on consolidation has suffered an impairment loss of 100% since the date of acquisition.

(v) If BB Ltd had revalued its non-current assets at ?500,000 on 30 April 2014, the company's financial statements for each of the four years to 30 April 2018 would have been charged with additional depreciation of ?10,000.

Required:

(a) Prepare a consolidated statement of financial position as at 30 April 2018, ignoring the depreciation consequences of the fair value adjustment.

(b) Modify this consolidated statement so as to account for additional depreciation in relation to the non-current assets of BB Ltd.

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BB Ltd AA Ltd £000 £000 Assets Non-current assets Property, plant and equipment 2,265 345 Investment in BB Ltd 800 3,065 2,124 Current assets 466 811 5,189 Equity Ordinary share capital Retained earnings 3,000 1,029 350 223 4,029 573 Liabilities Current liabilities 1,160 238 5,189 811