Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Before a company decide to consolidate its financial statements with another company, they have to determine the amount of holdings in that particular company. Assume

image text in transcribedimage text in transcribed

Before a company decide to consolidate its financial statements with another company, they have to determine the amount of holdings in that particular company. Assume that Cadburry Bhd, for the past six years had acquired the shares of Kranberi Bhd as follows: Date of acquisition No. of shares RM / share 31 December 2015 1.50 20,000 30,000 31 October 2016 1.20 30 September 2018 20,000 1.00 31 December 2020 50,000 1.50 Additional information: 1. ued by KI beri Bhd 160,000 shares at RM 1 per The number of ordinary shares share. 11. The number of preference shares issued by Kranberi Bhd is 50,000 shares at RM 1 per share. Based on the information given: a. EXPLAIN the consolidation treatment for cach date Cadburry Bhd acquired shares in Kranberi Bhd. (show all working solution (if any) b. Assume that on 31 December 2020, instead of acquiring 40,000 ordinary shares of Kranberi Bhd, Cadburry Bhd acquired the following shares: No. of shares RM Type of shares Ordinary shares 5,000 1.50 per share 1.20 per share Preference shares 45,000 In addition, Cadburry Bhd has the power to control the financial and operating policies of Kranberi Bhd and appoint 3 out 5 board of directors of Kranberi Bhd. EXPLAIN the consolidation treatment of Berlian Bhd. Would your answer will be the same as in (a) (show all working solutions)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cross-Border Mergers And Acquisitions UK Dimensions

Authors: Moshfique Uddin, Agyenim Boateng

1st Edition

0415836603, 9780415836609

More Books

Students also viewed these Accounting questions

Question

12.3 Explain employment termination of various occupational groups.

Answered: 1 week ago

Question

Define outplacement and severance pay.

Answered: 1 week ago

Question

What would you do?

Answered: 1 week ago