Question 2

Renault Ltd purchased 25% of the ordinary shares in Clio Ltd on 1 January 2018 when the retained earnings of Clio Ltd were 72,000. The cost of the investment was 160,000. Goodwill was impaired by 10% in 2021 for the first time since acquisition.

Statement of Financial Positions as at 31 December 2021

	Renault Ltd	Clio Ltd
	'000	'000
Assets
Non-current assets	4,500	410
Investment in Clio Ltd	160	0
Current assets	2,450	100
	7,110	510
Equity and liabilities
Ordinary share capital	4,100	300
Retained earnings	2,780	140
Current liabilities	230	70
Total equity and liabilities	7,110	510

Required

Prepare the Consolidated Statement of Financial Position of Renault Ltd as at 31 December 2021.