QUESTION 1 (25 marks) Blue Crane Limited is a company that holds shares in several other companies. The level of control regarding these investments leads to none of these investments being classified as a subsidiary, joint venture, or associate. White Lane Limited is also a company that holds shares in several other companies. These investments can be classified as either a subsidiary, joint venture or associate in terms of the relevant International Financial Reporting Standards. REQUIRED: 1.1) Indicate, with reasons, whether the financial statements of Blue Crane Limited and White Lane Limited can be classified as separate financial statements or not. (15 marks) 1.2) Discuss when a parent entity should consolidate investments in subsidiaries and when not. (10 marks) QUESTION 1 (25 marks) Blue Crane Limited is a company that holds shares in several other companies. The level of control regarding these investments leads to none of these investments being classified as a subsidiary, joint venture, or associate. White Lane Limited is also a company that holds shares in several other companies. These investments can be classified as either a subsidiary, joint venture or associate in terms of the relevant International Financial Reporting Standards. REQUIRED: 1.1) Indicate, with reasons, whether the financial statements of Blue Crane Limited and White Lane Limited can be classified as separate financial statements or not. (15 marks) 1.2) Discuss when a parent entity should consolidate investments in subsidiaries and when not. (10 marks)