Question

On January 1, Year 5, FLA Company issued 6,300 ordinary shares to purchase 9,000 ordinary shares of MES Company. Prior to the acquisition, FLA had 180,000 and MES had 10,000 ordinary shares outstanding, which were trading at $5 and $3 per share, respectively. The following information has been assembled for these two companies just prior to the acquisition:
Required:
(a) Prepare a consolidated statement of financial position for FLA Company and its non–wholly owned subsidiary at January 1, Year 5, under each of the following:
(i) Proprietary theory
(ii) Parent company theory
(iii) Parent company extension theory
(iv) Entity theory
(b) Which of the above theories is required under IFRS 3?


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  • CreatedJune 08, 2015
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