Question: Write a report for the accountant at Mensa Ltd advising on the following issues: 1. Should the adjustments to fair value be made in the

Write a report for the accountant at Mensa Ltd advising on the following issues:
1. Should the adjustments to fair value be made in the consolidation worksheet or in the accounts of CancerLtd?
2. What equity accounts should be used when revaluing the assets, and should different equity accounts such as income (similar to recognition of an excess) be used in relation to recognition of liabilities?
3. Do these equity accounts remain in existence indefinitely, since they do not seem to be related to the equity accounts recognised by Cancer Ltd itself?

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1 From the point of view of IFRS 3 and IFRS10 there is no specification on where the adjustments are made However if the assets of the subsidiary are ... View full answer

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