Question 2 The statements of financial position of TT Ltd and UU Ltd as at 31 May 2018 are as follows: The following information is available: (i) TT Ltd acquired 70% of the share capital of UU Ltd on 31 May 2010 . There have been no changes in the share capital of UU Ltd since that date. (ii) On 31 May 2010 , the fair value of the non-current assets of UU Ltd was 150,000 higher than their book value on that date. This valuation has not been reflected in the books of UU Ltd. (iii) On 31 May 2010, the retained earnings of UU Ltd were 850,000. (iv) Goodwill has suffered no impairment since 31 May 2010. (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 2018, assuming that the non-controlling interest in UU Ltd is to be measured at the appropriate proportion of that company's identifiable net assets. Question 2 The statements of financial position of TT Ltd and UU Ltd as at 31 May 2018 are as follows: The following information is available: (i) TT Ltd acquired 70% of the share capital of UU Ltd on 31 May 2010 . There have been no changes in the share capital of UU Ltd since that date. (ii) On 31 May 2010 , the fair value of the non-current assets of UU Ltd was 150,000 higher than their book value on that date. This valuation has not been reflected in the books of UU Ltd. (iii) On 31 May 2010, the retained earnings of UU Ltd were 850,000. (iv) Goodwill has suffered no impairment since 31 May 2010. (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 2018, assuming that the non-controlling interest in UU Ltd is to be measured at the appropriate proportion of that company's identifiable net assets