The summarized statements of financial position of Grand plc and Pony plc at 31 December year 6 were as follows:

Grand bought 60 per cent of the shares of Pony on 31 December year 3. At that date Pony’s retained earnings were £55m. Since that date, the fair value of goodwill has been impaired by £20m. Prepare a group statement of financial position as at 31 December year 6.

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Grand plc Pony plc m m Non-current assets 180 75 Investment in Pony plc at cost 90 Current assets 80 20 Total assets 350 95 Current liabilities 30 15 Ordinary share capital 150 45 Retained earnings 170 35 350 95