"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 Assuming P omitted certain transactions as illustrated below. You must discussabout the accounting treatment for the omitted (i) and (ii) with reference to anyapplicable accounting standard.P acquired a new warehouse for RM1,000,000 on 1st Jan 2020 with anestimated useful life of 20 years. The factory was brought into useimmediately on the same day. The company adopts a cost model for allproperty, plant and machinery.With a surplus funds of few millions, P invested in a number ofcommercial lots for RM3,000,000 during the year of 2020. Theseproperties are estimated to have a 20-years of useful life. The marketvalue of these properties stands at RM3,300,000 at the end of December2020.i)ii)

Given Data: Applicable Accounting Standard - IFRS 10- Consolidated Financial Statements. P acquired…

Assuming P omitted certain transactions as illustrated below. You must discuss about the accounting treatment for the omitted (i) and (ii) with reference to any applicable accounting standard. P acquired a new warehouse for RM1,000,000 on 1st Jan 2020 with a estimated useful life of 20 years. The factory was brought into us immediately on the same day. The company adopts a cost model for a property, plant and machinery. i) With a surplus funds of few millions, P invested in a number o commercial lots for RM3,000,000 during the year of 2020. Thes properties are estimated to have a 20-years of useful life. The marke value of these properties stands at RM3,300,000 at the end of Decembe

Assuming P omitted certain transactions as illustrated below. You must discuss about the accounting treatment for the omitted (i) and (ii) with reference to any applicable accounting standard. P acquired a new warehouse for RM1,000,000 on 1st Jan 2020 with a estimated useful life of 20 years. The factory was brought into us immediately on the same day. The company adopts a cost model for a property, plant and machinery. i) With a surplus funds of few millions, P invested in a number o commercial lots for RM3,000,000 during the year of 2020. Thes properties are estimated to have a 20-years of useful life. The marke value of these properties stands at RM3,300,000 at the end of Decembe

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8RE

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