"IFRS 10 Consolidated Financial Statements states that there are few ways toascertain if the investor 'controls' and 'influences' its investees."Evaluate the statement above with reference to any applicable accountingstandard and demonstrate the application of IFRS 10 Consolidated financialstatements with the scenario provided below. Further, you must prepare asimplified consolidated statement of financial position as at 31st December 2020а.to support your demonstration.Scenario:P acquires 100% of S's ordinary shares for RM1,500,000 on 31st December2018. S's reserves (consists of only retained earnings) were RM 400,000 at thedate of acquisition. The following presents the statement of financial position ofboth companies as at 31st December 2020.PSNotesRMRMAs at 31st Dec 2020000.*000Non-current assets:Property, Plant and equipmentGoodwill2,0001,000Investment in S1,500Net current asset3002003,8001,200Share capital300800Retained earnings3,5004003,8001,200

Consolidated financial statements are prepared to report the financial information of two or more…

"IFRS 10 Consolidated Financial Statements states that there are few ways to ascertain if the investor 'controls' and 'influences' its investees." Evaluate the statement above with reference to any applicable accounting standard and demonstrate the application of IFRS 10 Consolidated financial statements with the scenario provided below. Further, you must prepare a simplified consolidated statement of financial position as at 31st December 2020 to support your demonstration. а. Scenario: P acquires 100% of S's ordinary shares for RM1,500,000 on 31st December 2018. S's reserves (consists of only retained earnings) were RM 400,000 at the date of acquisition. The following presents the statement of financial position of both companies as at 31st December 2020. P S Notes RM RM As at 31st Dec 2020 *000 000, Non-current assets: Property, Plant and equipment 2,000 1,000 Goodwill Investment in S 1,500 Net current asset 300 200 3,800 1,200 Share capital 300 800 Retained earnings 3,500 400 3,800 1,200

"IFRS 10 Consolidated Financial Statements states that there are few ways to ascertain if the investor 'controls' and 'influences' its investees." Evaluate the statement above with reference to any applicable accounting standard and demonstrate the application of IFRS 10 Consolidated financial statements with the scenario provided below. Further, you must prepare a simplified consolidated statement of financial position as at 31st December 2020 to support your demonstration. а. Scenario: P acquires 100% of S's ordinary shares for RM1,500,000 on 31st December 2018. S's reserves (consists of only retained earnings) were RM 400,000 at the date of acquisition. The following presents the statement of financial position of both companies as at 31st December 2020. P S Notes RM RM As at 31st Dec 2020 *000 000, Non-current assets: Property, Plant and equipment 2,000 1,000 Goodwill Investment in S 1,500 Net current asset 300 200 3,800 1,200 Share capital 300 800 Retained earnings 3,500 400 3,800 1,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

"IFRS 10 Consolidated Financial Statements states that there are few ways to
ascertain if the investor 'controls' and 'influences' its investees."
Evaluate the statement above with reference to any applicable accounting
standard and demonstrate the application of IFRS 10 Consolidated financial
statements with the scenario provided below. Further, you must prepare a
simplified consolidated statement of financial position as at 31st December 2020
а.
to support your demonstration.
Scenario:
P acquires 100% of S's ordinary shares for RM1,500,000 on 31st December
2018. S's reserves (consists of only retained earnings) were RM 400,000 at the
date of acquisition. The following presents the statement of financial position of
both companies as at 31st December 2020.
P
S
Notes
RM
RM
As at 31st Dec 2020
000.
*000
Non-current assets:
Property, Plant and equipment
Goodwill
2,000
1,000
Investment in S
1,500
Net current asset
300
200
3,800
1,200
Share capital
300
800
Retained earnings
3,500
400
3,800
1,200

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