On 1 January 20X1 Fibre plc acquired 80% of the ordinary shares of a Singaporean company, Fastlink Ltd, for £6m when Fastlink's retained earnings were $15.5m and the share premium was $0.8m. Fastlink's financial statements have been prepared in their functional currency of Singapore dollars and comply with IAS 21. The summarised statements of income and financial position as at 31 December 20X1 were as follows:

The following information is also available:
(i) The opening inventory was acquired when the exchange rate was £1 = $2.6 and the closing inventory when the rate was £1 = $2.2.
(ii) Exchange rates were as follows:
At 1 January 20X1................................................................£1 = $2.5
Average for the year ending 31 December 20X4...........................£1 = $2.25
At 31 December 20X1............................................................£1 = $2.0
Required:
(a) Prepare a consolidated statement of income.
(b) Prepare a consolidated statement of financial position:
(i) Show the goodwill calculation.
(ii) Show the non-controlling interest calculation.
(iii) Complete with retained earnings as a balancing figure.
(c) Reconcile the retained earnings figure showing exchange gains and losses.

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Statements of income for the year ended 31 December 20XI Fibre Fastlink £000 $000 200,000 Sales 50,000 8,000 Opening inventories 20,000 130,000 Purchases 30,000 Closing inventories (40,000) T10,000 90,000 (6,000) 32,000 18,000 Cost of sales Gross profit Expenses (15,000) 75,000 (6,500) 11,500 Profit before taxation (15,000) 60,000 Taxation (3,000) 8,500 Profit after taxation Statement of financial position as at 31 December 20XI £000 $000 Non-current assets 90,000 25,000 Investment in Fastlink 6,000 Current assets: Inventories 40,000 6,000 5,000 Trade receivables 27,000 Cash 2,000 69,000 4,000 Total current assets 15,000 Current liabilities: Trade payables Taxation 35,000 11,000 15,000 3,000 14,000 Total current liabilities 50,000 1 15,000 20,000 Total assets less liabilities 26,000 1,200 Share capital Share premium Retained earnings 800 95,000 24,000 26,000 115,000