Following are the unconsolidated balances of John Smith Company and its foreign subsidiaries as of December 31, Year 1. Assume that Subsidiary A is 100% owned by Smith, and that Subsidiary B is 100% owned by Subsidiary A. Ignore an investment in subsidiary balances for the purposes of this Assignment. Subsidiary B in GBP (British Pounds): Net income: 20,000 Assets: 150,000 Liabilities: 100,000 Equity: 50,000 Subsidiary A in euros: Net income: 40,000 Assets: 300,000 Liabilities: 200,000 Equity: 100,000 Parent in U.S. dollars: Net income: 30,000 Assets: 600,000 Liabilities: 400,000 Equity: 200,000 The relevant exchange rates are as follows: GBP to euros: Year-end rate: 1.25 Historical rate: 1.15; annual weighted average rate: 1.20 euro to U.S. dollars: Year-end rate: 1.30; Historical rate: 1.10; Annual weighted average rate: 1.25 GBP to USD: Year-end rate: 1.625; Historical rate: 1.50; Annual weighted average rate: 1.55 Instructions: Prepare and provide the consolidated amounts for John Smith Company at the end of Year 1, following the step-by-step method which is prescribed by the US GAAP and allowed by the IFRS. Provide consolidated amounts for John Smith Company following the direct method allowed by the IFRS. Make sure you show the details of any calculations supported by authoritative references when answering this question.