Given the circumstances in Question 33.5 above, describe how this relationship between Parhold plc and Subsid plc would affect the following at the end of the first accounting year after acquisition:

Data from 33.5
Parhold pIc has bought for cash of £12 million all the voting shares of Subsid pIc, whose net assets have been valued at £10 million. Describe how this transaction would affect:

a. The financial statements of Subsid plc;
b. The financial statements of Parhold plc; and
c. The consolidated financial statements of Parhold Group.