Question 3 The statement of financial position of AA Ltd and BB Ltd as at 31 May 2022 are as follows Assets Non-current assets AA Ltd $000 BB Ltd $000 Property, plant and equipment Investment in BB Ltd 6,910 1,640 1,400 8,310 Current assets 3,110 1,120 Total assets 11,420 2,760 Equity Ordinary share capital 4,000 500 Retained earnings 5,380 1,550 9,380 2,050 Liabilities Current liabilities Total equity & liabilities The following information is available 2,040 710 11.420 2.760 1. AA Ltd acquired 70% of the share capital of BB Ltd on 31 May 2020. There have been no changes in the share capital of BB Ltd since that date. 2. 3. 4. On 31 May 2020, the fair value of non-current assets of BB Ltd was $150,000 greater than their carrying amount on that date. This valuation has not been reflected in the books of BB Ltd. On 31 May 2020, the retained earnings of BB Ltd were $850,000. Goodwill has suffered impairment by 20% as at 31 May 2022. Required Prepare consolidated statement of financial position as at 31 May 2022. (22 marks)