Beckett Corp. is facing a decision of whether to purchase 40% of Kyla Corp.'s shares for Si.6

Question:

Beckett Corp. is facing a decision of whether to purchase 40% of Kyla Corp.'s shares for Si.6 million cash, giving Beckett significant influence over the investee company, or 60% of Kyla's shares for $2 .4 million cash, making Kyla a subsidiary company. The book value of Kyla's net assets is $4 million (assets are $ 10 million and liabilities are $6 million). How will this investment affect Beckett's statement of financial position if Beckett acquires
(a) A 40% interest and
(b) A 60% interest, assuming Beckett applies !FRS? That is, for each of (a) and (b), indicate the immediate effect on Beckett's total assets, total liabilities, and shareholders' equity, assuming Beckett applies IFRS.
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...