B) Intern Co acquired 16 million ordinary shares in Vallay for RM 56 million. The issued...
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B) Intern Co acquired 16 million ordinary shares in Vallay for RM 56 million. The issued share capital of Vallay comprised 100 million ordinary shares. Intern Co also has share options that gives it the right to acquire another 12 million ordinary shares in Vallay. If Intern Co exercises its rights, the enlarged share capital of Vallay will be 112 million shares. Discuss the accounting of Intern Co treatment of the Vallay's investment in the financial statement and its consolidated financial statements. (12 marks) B) Intern Co acquired 16 million ordinary shares in Vallay for RM 56 million. The issued share capital of Vallay comprised 100 million ordinary shares. Intern Co also has share options that gives it the right to acquire another 12 million ordinary shares in Vallay. If Intern Co exercises its rights, the enlarged share capital of Vallay will be 112 million shares. Discuss the accounting of Intern Co treatment of the Vallay's investment in the financial statement and its consolidated financial statements. (12 marks)
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Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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