Question 6 The following accounts are the consolidated statement of financial position and parent company statement of financial position for Alpha Ltd as at 30 June 20X2. Consolidated Parent company statement of financial position statement of financial position Ordinary shares 140,000 140,000 Capital reserve 92,400 92,400 Retained earnings 79,884 35,280 Non-controlling interest 12,329 324,613 267,680 Non-current assets Property 127,400 84,000 Plant and equipment 62,720 50,400 Goodwill 85,680 Investment in 151,200 subsidiary (50,400 shares) Current assets Inventory 121,604 71,120 Trade receivables 70,429 51,800 Cash at bank 24,360 216,393 122,920 Current liabilities Trade payables 140,420 80,920 Income tax 27,160 20,720 Bank overdraft 39,200 167,580 140,840 Working capital 48,813 (17,920) 324,613 267,680 Notes: There was only one subsidiary called Beta Ltd.There were no capital reserves in the subsidiary. Alpha produced inventory for sale to the subsidiary at a cost of 3,360 in May 20X2. The inventory was invoiced to the subsidiary at 4,200 and was still on hand at the subsidiarys warehouse on 30 June 20X2. The invoice had not been settled at 30 June 20X2.The retained earnings of the subsidiary had a credit balance of 16,800 at the date of acquisition. No fair value adjustments were necessary.There was a right of set-off between overdrafts and bank balances.The parent owns 90% of the subsidiary. Required: Prepare the statement of financial position as at 30 June 20X2 of the subsidiary company from the information given above. The non-controlling interest is measured using method 1. Discuss briefly the main reasons for the publication of consolidated accounts.