Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 1 (75 marks) Lighthouse Investments Proprietary Limited is a company with various investments in subsidiaries that are accounted for at cost. Unless otherwise

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

QUESTION 1 (75 marks) Lighthouse Investments Proprietary Limited is a company with various investments in subsidiaries that are accounted for at cost. Unless otherwise stated, all the companies in their group have a 30 June financial year-end. The Lighthouse Investments Proprietary Limited Group prepares consolidated financial statements. None of the Lighthouse Investments Group entities are listed on or are planning to list on the JSE. Waves Proprietary Limited Lighthouse Proprietary Limited holds 85% of the shares in Waves Proprietary Limited. Waves Proprietary Limited, therefore, qualifies as a subsidiary of Lighthouse Proprietary Limited. Waves Proprietary Limited, however, holds 100% of Fish Proprietary Limited. Fish Proprietary Limited, therefore, qualifies as a subsidiary of Waves Proprietary Limited. Waves Proprietary Limited's directors decided not to prepare consolidated financial statements, seeing as Lighthouse Investments Proprietary Limited prepares consolidated financial statements. Stars Proprietary Limited Lighthouse Investments Proprietary Limited holds 100 000 shares in Stars Proprietary Limited, and Stars Proprietary Limited has an issued share capital of 150 000 shares. Since acquiring the shares, Lighthouse Investments Proprietary Limited has been actively involved in Stars Proprietary Limited's daily activities and has the right to appoint or remove members on the board of Stars Proprietary Limited.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th edition

1118096894, 978-1-11921511, 978-1118096895

More Books

Students also viewed these Accounting questions

Question

Which immediate measures could then be taken?

Answered: 1 week ago

Question

Will the project trigger a change process?

Answered: 1 week ago