Question 2 The followings are the financial information of Parent and Daughter pre-acquisition date. Parent Ltd Daughter Ltd Cash 20,000 20,000 Other net assets 25,000 8,800 Net assets 45,000 10,800 Ordinary shares of 1 each 40,500 9,000 Retained earnings 4,500 1,800 Total equity 45,000 10,800 On 1 January 20XX Parent Ltd acquired all the ordinary shares in Daughter Ltd for 10,800 cash. The fair value of the net assets in Daughter Ltd was their book value. Required: a) Prepare the statement of financial position of Parent Ltd reflecting the acquisition of Daughter Ltd as at 1 January 20XX. b) Prepare the consolidated statement of financial position of Parent Ltd at 31st December 20XX