2 The following draft Statements of Financial Position are for three publicly limited liability companies: Pickering, Shotley-Bridge and Alnwick. Statements of Financial Position as at 31 December 2021 ASSETS Pickering m Shotley- Alnwick Bridge m m Non-current assets Property, Plant and Equipment 420 184 160 Investments 280 20 80. 700 204 240 Current assets Inventory 136 72 48 Trade receivables 160 104 60 Other receivables 28 16 8 Cash and cash equivalents 120 16 324 312 132 Total assets 1,024 516 372 EQUITY AND LIABILITIES Equity Ordinary share capital (1 shares) 400 100 128 Preference share capital 60 (1 shares) Reserves 188 96 40 Total equity 588 256 168 Non-current liabilities 248 52 52 56 Current liabilities Trade payables 44 104 64 Other payables 56 48 40 Current tax 68 56 44 Bank overdraft 20 Total current liabilities 188 208 148 Total liabilities 436 260 204 Total equity and liabilities 1,024 516 372 ...continued Additional information: (i) On 1 January 2016 Pickering purchased 80% of the ordinary shares in Shotley-Bridge paying 160 million. The reserves of Shotley-Bridge at 1 January 2016 were 60 million. (ii) On 1 April 2021, Pickering purchased 30% of the ordinary shares in Alnwick paying 60 million. Pickering were therefore able to exert significant influence over Alnwick from 1 April 2021. The reserves of Alnwick at 1 April 2021 were 12 million. (iii) During the year ended 31 December 2021, Pickering sold goods costing 30 million to Shotley-Bridge for 50 million. 60% of these goods remained unsold at 31 December 2021. Shotley-Bridge owes Pickering 20 million at 31 December 2021. (iv) During the year ended 31 December 2021, Shotley-Bridge sold goods costing 10 million to Pickering for 14 million. One-quarter of these goods remained unsold at 31 December 2021. Pickering owes Shotley-Bridge 4 million at 31 December 2021. (v) On 1 July 2021, Pickering made a long-term loan of 40 million to Alnwick. The loan bears interest at 6%. Interest due for the period has been appropriately accounted for through the Statement of Profit or Loss. (vi) During the year ended 31 December 2021, Pickering sold goods costing 16 million to Alnwick for 36 million. Alnwick had resold 30% these goods by 31 December 2021. Alnwick owes Pickering 16 million at 31 December 2021. (vii) Non-controlling interests are calculated as a proportion of the subsidiary's net assets. Required: (a) Prepare the consolidated Statement of Financial Position of the Pickering Group as at 31 December 2021, in accordance with international financial reporting standards. (90 marks) (b) With specific reference to the consolidated accounts of the Pickering Group for the year ended 31 December 2021, explain why it is necessary to eliminate unrealised profit when preparing consolidated financial statements. (10 marks)