Hello, it is quite hard exercise that we need to solve for homework. Thank you very much for the help and time.

Even if non-controlling interest is not mentioned. It is 20%, because (100%-80%=20%)

QUESTION 1 Hurrican Group Hurrican is a trader. To be able to control the full spectrum of that market Hurrican acquired 80% of the voting shares of Shiruken. This transaction happened on 1st April 2014. It is clear that Hurrican obtained the control and this transaction was a business combination. Both companies are preparing their financial statements under IFRS. On 31st December 2014 the individual balance sheets of the two entities are the following each amounts are in thousand dollars, kS): Hurrican (k$) Shiruken (k$) 14 31 Investment in Shiruken Land and build Plant and 700 300 1000 1000 400 300 200 100 2000 Cash and equivalent TOTAL ASSETS: 600 1000 4 000 100 Issued capital Share Retained earni 50 100 450 600 1 900 2 000 term loans Account payables and other short term liabilities Liabilities OWNERS EQUITY LIABILITY: 1 100 2 000 4 000 1000 400 2000 The following information is relevant (acquisition): 1. The issued capital and share premium of both companies are the same since 2. The movement in the retained earnings of the companies were the following during 2014 Hurrican Shiruken 1January 2014 (opening) Net profit of 2014 Dividend declared 31stDecember 2014 (closing) 1000 1 500 150 300 1900 450