A Ltd acquired 70% of the shares of B Ltd (whose share capital of $100 million comprises 100 million ordinary shares) for $70 million when B Ltd was incorporated in January 20x1. In January 20x5, when the fair value of B Ltds net assets was represented by share capital of $100 million and retained profit of $300 million, and when B Ltds shares were traded at $6 per share, A Ltd disposed of some shares of B Ltd. Assume A Ltd has other subsidiaries, besides B Ltd. Assume that a direct shareholding of more than 50% gives rise to control and a direct shareholding of 20% or more but less than 50% gives rise to significant influence.

Required: (a) Compute the profit or loss on disposal of shares of B Ltd that is to be reported in A Ltds 20x5 consolidated statement of profit or loss and other comprehensive income, under the following independent scenarios:

(i) A Ltd disposed of 70 million of B Ltds shares. (ii) A Ltd disposed of 60 million of B Ltds shares. (iii) A Ltd disposed of 30 million of B Ltds shares. (iv) A Ltd disposed of 10 million of B Ltds shares.

(b) Based on the independent scenarios of A Ltds disposal of B Ltds shares given in part (a), identify the types of changes in shareholding and explain the accounting treatment for profit or loss on disposal of shares for each type of change in shareholding.