number Question CASE STUDY CONVEX L. is a new company that was established on January, 2020 tevensee the production of comavirus vaccines for Ghana On 1 July, 2020, CONVEX Lad acquired 75% shares in CONCAVE Lada pharmaceutical company, to speed up the vaccine production. As a new graduate from UGBS CONVEX a. las employed you as their accountant. Ata management meeting held a number of ses were raised about how CONVEX I should deal with its transactions and investment in CONCAVE 1.od and the need to conduct financial ratio analysis to determine the profitability and sustainability of CONCAVE L. In a meno to management, provide your views on how the following issues should be addressed Issue At the meeting, executive members could not agree on whether CONVEX Lad should prepare and present both separate and consolidated financial statements. Some of the executive members mised issues that CONVEX Ld does not need to prepare consolidated financial statements because it is simply an investment made in CONCAVE L. Again, others were of the view the CONVEX 1. is neither a public company or is it in the process of filing financial statements for the purpose of issuing shares or debe to the public marks Issue B Asuming there is the need fo CONVEX L. to prepare consolidated financial statements and CONCAVE Lud. has presented its separate financial statement to CONVEX Lad. comment on how the following transactions between CONVEX L and CONCAVE Lad. will be a for in the colidated financial statements and explain to management the ion for the suggested treatment (at the date of acquisition, the fair value of all the assets of CONVEX Lid were the same as their carrying munts with the exception of one of its equipment. This had a fair value of Gte2 EXAMINEDIC AGEN-BOATENGDEMOLAMELT AKARKAN SORA ANDO million. The book value of this equipment was Helmillion before the acquisitice. As a result of the fair valution, the useful life of the equipment has been reviewed to 10 years remaining life 4 marks (b) At the acquisition date. CONVEX Lud, paid Gc20 million cath and promised to pay additional GH2 million if the vaccine production is successful. However, the value of net ses of CONCAVE Lid was just Gelo million (c)Within the year. CONVEX Lad sold pharmaceutical products worth Hex million to CONCAVEL CONVEX made a margin of 20% on these sales. CONCAVE Lad has sold 60% of these products to external parties by the end of the year (d) Within the year. CONCAVE Ltd, oquired land for GH450,000 and sold it to CONVEX Lid for GH455,000. CONVEX Ld is in possession of the land as at the end of the year Issue CONVEX Lud is planning to sell 30% of their shares to another company who wants to support local production of the vaccine. How will this transaction affects the proparation of CONVEX Ltd financial statements for the next accounting pera? Issue D Assuming you have done the financial ratio analysis and you have realized that profitability is looking good but liquidity is not impressive and needs urgent attention. What do you think could be the problem with CONCAVE Led that your company needs to help them adress? TOTAL: 30 Marks