Can you please show workings. Thank you.

QUESTION 3 [25 MARKS] (a) You have just been appointed as member of the Finance Committee reporting to the Board of Directors of the company where you are employed. Your responsibilities include ensuring that financial statements prepared by the Accountant complies with International Accounting Standards (IAS) and International Financial Reporting Standard (IFRS). The board has requested you to prepare a report to explain the conditions that shall be met for an investment to be accounted as associate and to explain the equity method, as per IAS 28 - Investments in Associates and Joint Ventures. (15 Marks] (b) On 01 September 2019, Picant Ltd, acquired 12 million shares in Apricot Ltd paying $ 4.5 per share in cash. The summarized statement of profit or loss for Apricot Ltd for the year ended 31 December 2019 are as follows: Revenue Cost of sales Gross loss Expenses Net loss before tax Tax credit Loss for the period $ 000 75,000 (95,000 (20,000) (5,000 (25,000) 5,000 (20,000 NOTES 1. The details of Apricot's share capital at 01 September 2019 were: $ 000 30,000 Equity shares of $ 1 each 2. On 01 September 2019, Picant Ltd sold goods to Apricot Ltd for $ 65 million at a markup of 15%. At the year end, Apricot Ltd still held one-third of these goods as inventory. 3. At 31 December 2019, the directors of Picant Ltd believe that the investment in the Apricot Ltd needs impairing by $ 5 million. REQUIRED Calculate the carrying amount of the investment in Apricot at 31 December 2019 under the equity method (Associate). (10 Marks]