Question 2 Parent company (P Co) acquired 70% interest in Subsidiary ( Co) when the share capital of was $80,000 and its retained earings was $30,000. At the date of acquisition, the book values of the assets of S Co were approximately equal to their fair values. The fair value of non-controlling interests as at the date of acquisition was $80,000. The current Statements of Financial Position for P Co and S Co are shown below, Statement of Financial Position PC SC Cod Chad Entity Theory Theory Perest Other 400.000 279.000 Investment in SC Liabilities 200.000 250.000) 10.000 Netts 350.000 17.00 Share capital Retained carings 200.000 150.000 NO.000 96.000 Equity 350.000 175.000 Total Equity 350.000 178.000 Required Complete the combined financial statements under the "parent" theory and the entity theory Question: descriptive The ownership of majority voting rights in itself may not be a conclusive determinant of control in IFRS 10 Consolidated Financial Statements, Provide examples of any two situations where ownership of majority voting rights is not a conclusive determinant of control Statement of Financial Position SCo Combined Combined Parent Entity Theory Theory Parent NCI 679,000 Total 679,000 400,000 279,000 Other assets Goodwill Investment in S Co Liabilities Net assets 200,000 (250,000) 350.000 0 (351.000) 0 (351.000) (101.000) 178.000 200,000 150,000 80,000 98,000 Share capital Retained earnings Non-controlling interests share of goodwill Equity Non-controlling interests Total Equity 350,000 178,000 350.000 178,000