Huborn plc acquired 75% of Clardon Ltd's equity shares for 300,000 on 1 January 2019. At the date of acquisition Clardon Ltd had retained earnings of 190,000. The two companies' financial statements are presented as follows as at 31 December 2020 (two years after the acquisition): Statements of Financial Position as at 31 December 2020 Huborn plc '000 Clardon Ltd '000 Assets Non-current assets Property, plant and equipment Investment Clardon Ltd 350 1,940 300 2,240 350 Current assets Inventories Trade receivables Cash and bank 500 650 170 1320 3,560 220 40 35 295 645 Total assets Equity and liabilities Equity Share capital Retained earnings Revaluation surplus 100 240 2,000 500 20 2,520 340 Noncurrent liabilities Bank loan 6% 500 150 Current liabilities Trade payables Tax payable 450 90 540 3,560 130 25 155 645 Total equity and liabilities 20 Statements of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020 Huborn plc Clardon Ltd '000 '000 Sales revenue 5,000 1,000 Cost of sales 2.900 600 Gross profit 2,100 400 Other expenses 1,710 320 Profit before interest and tax 390 Interest expense 30 Profit before tax 360 80 Income tax expense 90 25 Profit for the year 270 55 Other comprehensive income: Gain on revaluation of property Total comprehensive income for the year 290 Additional information: 1. In December 2020 Huborn plc delivered goods to Clardon Ltd and sent an invoice to Clardon Ltd for 100,000. The goods had cost Huborn plc 80,000. Clardon Ltd has received the invoice but not yet paid, and all these goods remain in Clardon's inventory as at 31 December 2020. 2. It is the group policy to value the non-controlling interest at acquisition at fair value. The fair value of the non-controlling interest in Clardon Ltd at the date of acquisition was 100,000. 3. Goodwill has suffered no impairment. 4. Clardon Ltd has issued no shares since the acquisition. 5. Clardon Ltd has not declared or paid any dividends in 2020. REQUIRED: 1. Prepare the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2020 and the statement of financial position as at 31 December 2020 for Huborn plc group. NB! It is essential that you show all your workings. 2. Explain which intra-group transactions and balances you have eliminated and why in preparing the consolidated statements in Requirement 1