Note: 15 mark question

P Ltd owns 20% of B Ltd. In recent months it has been in takeover discussions with A Ltd, and agreement has finally been reached between the different parties on the acquisition by P Ltd of 60% of the issued shares of A Ltd. One of the assets of A Ltd is a 70% holding in B Ltd. The group accountant of P Ltd has been examining the new group under the control of P Ltd and considering the implications for the preparation of consolidated financial statements. One of the members of the accounting team, Mei Fen, has raised the issue of accounting for indirect non-controlling interests. According to Mei Fen, with the new group structure there are both direct and indirect non-controlling interests, and she argues that different measurements are then required. The group accountant has asked you to determine the non-controlling interests in the new group, differentiating between different non-controlling interest groups, and to explain the difference, if any, in the calculation of their interests in group equity. Required Prepare a report for the group accountant