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3. Matrix ltd. is one of the leading business group in Sultanate of Oman. More than 5000 employees are working in this group. With its

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3. Matrix ltd. is one of the leading business group in Sultanate of Oman. More than 5000 employees are working in this group. With its commitment and strong focus in providing engineering solutions to the Oil & Gas, Petrochemicals, Power, Water and Wastewater sectors, Matrix ltd. Group has been structured into three Strategic Business Units (SBU): Contracting, Trading & Manufacturing A) Matrix ltd has invested OMR 250,000(25%) of the equity shares and has board members in Reema which has given Matrix Itd significant influence on Reema. The other shares (75%) in Reema were held by many other shareholders. As it had significant influence, Matrix Ltd. used equity accounting for the investments made. In January 2019, Arhan proposed an offer to purchase all the shares of Reema. This proposal received the support of all the directors of Reema except the directors appointed by Matrix ltd. On 1st March 2019, Arhan declared that it had bought the remaining 75% of the share capital of Reema. Required: Explain how the investment in Reema should be treated in the Statement of Comprehensive Income of Matrix Itd for the year ended 31st March 2019 and the consolidated statement of financial position at 31st March 2019. (4 marks)

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