Hi,

There are some Questions about corporate accounting.

Question 1 P Ltd. has a 70% controlling interest in S Ltd. It acquired the controlling interest several years ago for $35,000. P Ltd. does not prepare separate financial statements in accordance with IFRS and recognizes all equity investments at cost. On 30 June 2018, the carrying value of S Ltd.'s net assets in the consolidated financial statements is $59,500. The carrying amount of the NCI in S Ltd. is $18,800 (including the NCI share of accumulated OCI). On 1 July 2018 P Ltd. sells a 55% share of S Ltd. to a third party for consideration of $52,500. Following the sale, P loses control of S but retains a 15% non-controlling interest. The fair value of the non-controlling interest in S at 1 July 2018 is $15,000, at 30 June 2019 is $20,000, and at 30 June 2020 is $22,000. Ignore tax effects. Required 1. From the parent's perspective, calculate the gain or loss on disposal. 2. From the group's perspective, calculate the gain or loss on disposal. 3. Prepare consolidation worksheet entries at 30 June 2019 and 30 June 2020