Question $1.$

IFRS $10$ defines consolidated financial statements as "the financial statements of a group presented as those of a single economic entity. A group is a parent and its subsidiaries. Accordingly, parent companies are required to prepare and present a set of accounts for the group as a whole. Under certain conditions a parent company need not prepare group accounts.

Briefly outline three $(3)$ of such circumstances.

Question $2$

On $1$ January $2019,$ CBG Ltd paid GHe $368,000$ to acquire $80\%$ of the share capital of UB Ltd$.$ The financial statements of CBG Ltd and UB Ltd for the year to $31$ December $2019$ are as follows:

Statements of comprehensive income for the year to $31$ December $2019$

CBG Ltd UB Ltd

Sales revenue GHe'$000$ GHe'$000$

Cost of sales

Gross profit

Adm. selling and dist. expenses

Profit before tax

Taxation

Profit for the year

$3480,1360$

$(1480)(640)$

$2000,720$

$(1140),(420)$

$860,300$

$(172)(60)$

${688}_{,}{240}_{?}$

Statements of changes in equity for the year to $31$ December $2019$

CBG Ltd $($GH${?}^{\text{'}}000)$

UB Ltd $($GHe ${?}^{\text{'}}000)$

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$\backslash$table$[[,\backslash$table$[[$Share$],[$Capital$]],\backslash$table$[[$Retained$],[$earnings$]],$Total,$\backslash$table$[[$Share Retained$],[$Capital earnings$]],$Total,$],[$Balance at $1/1/2019,800,600,1400,200,20,220],[$Profit for the year,,${688}_{?},{688}_{?},,{240}_{?},{240}_{?}$