Describe the key principles and implications for financial reporting when a parent company undergoes changes in group structure due to acquiring additional shareholdings or disposing of shareholdings in its subsidiary companies. $(10$ marks$)$

$4\mathrm{.}2$

On $1$ January $2001,$ Company A acquired $80\%$ of Company B$\text{'}$s shares for R$2,000,000,$ and at this date, the fair value of the non$-$controlling interest $($NCI$)$ in Company B was R$500,000.$ The fair value of Company B$\text{'}$s net assets was R$2,500,000.$ Goodwill was recognized and has not been impaired. On $31$ December $2004,$ Company A sold $25\%$ of its shares in Company B for R$1,500,000.$ Calculate the gain or loss on disposal that should be recognized in Company A$\text{'}$s consolidated statement of profit or loss for the year ended $31$ December $2004.(10$ marks$)$

$4\mathrm{.}3$

On $1$ July $2002,$ Company X purchased $75\%$ of Company Y$\text{'}$s shares for R$5,000,000.$ The fair value of NCI in Company Y at that date was R$1,000,000.$ Company X recognized goodwill. On $30$ June $2005,$ Company X sold $40\%$ of its shares in Company Y for R$2,800,000.$ The remaining $35\%$ of shares in Company Y had a fair value of R$2,000,000$ at the date of sale. Calculate the adjustment to be recorded in Company X$\text{'}$s consolidated reserves as a result of the sale of shares on $30$ June $2005.(10$ marks$)$