Auroral Company had the following investments in shares of other companies on December 31, Year 1: Required:
Question:
Required:
Determine the appropriate method for including each of these investments in Auroral Company's consolidated financial statements:
a. In accordance with IFRS.
b. In accordance with U.S. GAAP.
Transcribed Image Text:
Name of % Voting Rights 100% Company Country Comments Accurcast Domestic Operations are dissimilar from those of the parent and other subsidiaries No other shareholder owns more than 0.1 % of voting shares. Cromos has incurred a net operating loss three years in a row Fidelis is under jurisdiction of bankruptcy court. Operations are immaterial to those of the parent. Management control contract provides Auroral with effective contr Parent intends to sell one-half of its investment in the company but is not yet actively seeking a buyer Regulus is jointly owned with Coronal Company No other shareholder owns more than 10% of voting shares. Foreign government no longer allows dividends to be repatriated to foreign parent. Remaining 49% is owned by Borealis Inc. Bonello Domestic 45 Cromos Foreign 30 FidelisDomestic 100 enna Domestic 100 Marek Domestic 40 Phenix Domestic 90 RegulusForeign Synkron Foreign 50 15 TiksedForeign 70 Ypsilon Domestic 51
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