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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FLA Company MES Company Carrying amountFair value Carrying amount Fair value Plant assets Current assets 60,000 40,000 $100,000 $70,000 47,500 $20,000 10,000 $30,000 $25,000 11,200 Ordinary shares Retained earnings Long-term debt Current liabilities 30,000 35,000 15,000 20,000 $100,000 $10,000 12,500 2,500 5,000 $30,000 19,000 20,000 3,200 5,000