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Forever Lucky Company owns subsidiaries in Thailand and Shanghai. Forever and all its subsidiaries have prepared their financial statements in accordance with International Financial Reporting

Forever Lucky Company owns subsidiaries in Thailand and Shanghai. Forever and all its subsidiaries have prepared their financial statements in accordance with International Financial Reporting Standards and adopted a similar set of accounting policies, except for intangible assets. Forever has a policy to revalue certain items of intangible assets while all the subsidiaries have not adopted this policy but measured all items of intangible assets at cost less accumulated depreciation and accumulated impairment losses. Moreover, the subsidiary in Thailand has also set its financial year ended on 30 June but Forever and other subsidiaries have its financial year ended on 31 December.

Required:

a. For the accounting policy differences on intangible assets between Forever and its subsidiaries, discuss the implication to Forever when it prepares its consolidated financial statements.

b. For the differences in financial year end date, discuss the implication to Greedy when it prepares its consolidated financial statements

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