a) Prepare the statement of financial position of Parent Ltd reflecting the acquisition of Daughter Ltd as at 1 January 20XX. b) Prepare the consolidated statement of financial position Parent Ltd at 31st December 20XX.

Question 3 Assume that instead of the cash acquisition, Parent Ltd acquire 100% Daughter Ltd by the issue of 5,400 new ordinary shares. The fair value of a 1 ordinary share in Parent Ltd was 2. The fair value of the net assets in Daughter Ltd was their book value. Required: a) Prepare the statement of financial position of Parent Ltd reflecting the acquisition of Daughter Ltd as at 1 January 20XX. b) Prepare the consolidated statement of financial position of Parent Ltd at 31st December 20XX. Question 3 Assume that instead of the cash acquisition, Parent Ltd acquire 100% Daughter Ltd by the issue of 5,400 new ordinary shares. The fair value of a 1 ordinary share in Parent Ltd was 2. The fair value of the net assets in Daughter Ltd was their book value. Required: a) Prepare the statement of financial position of Parent Ltd reflecting the acquisition of Daughter Ltd as at 1 January 20XX. b) Prepare the consolidated statement of financial position of Parent Ltd at 31st December 20XX