The statements of financial position of TT Ltd and UU Ltd as at 31 May 2023 are as follows:

The following information is available:(i) TT Ltd acquired 70% of the share capital of UU Ltd on 31 May 2015. There have been no changes in the share capital of UU Ltd since that date.(ii) On 31 May 2015, the fair value of the non-current assets of UU Ltd was £150,000 higher than their book value on that date. This revaluation has not been reflected in the books of UU Ltd.(iii) On 31 May 2015, the retained earnings of UU Ltd were £850,000.(iv) Goodwill has suffered no impairment since 31 May 2015.(v) Any depreciation consequences of the fair value adjustment may be ignored.

Required:(a) Prepare a consolidated statement of financial position as at 31 May 2023, assuming that the non-controlling interest in UU Ltd is to be measured at the non-controlling shareholders' proportion of that company's identifiable net assets.(b) Explain how this consolidated statement would be modified if the non-controlling interest in UU Ltd on acquisition was measured at fair value and this fair value was determined by TT Ltd to be £530,000.

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Assets Non-current assets Property, plant and equipment Investment in UU Ltd Current assets Equity Ordinary share capital Retained earnings Liabilities Current liabilities TT Ltd £000 6,910 1,400 8,310 3,110 11,420 4,000 5,380 9,380 2,040 11,420 UU Ltd £000 1,640 1,120 2,760 500 1,550 2,050 710 2,760