Task ? 2

Specification:

Alfa undertaking owns 70% of shareholders equity of Beta subsidiary undertaking. Mr. Ivanov, Director of Beta undertaking owns the other 30% shares of Beta undertaking. Beta undertaking sold real property to Mr. Ivanov for 3 000. Mr. Ivanov is not a director of Alfa undertaking.

Question:

How should the management disclose the sale of the subsidiarys real property to the director of the subsidiary:

a) in separate financial statements of Beta subsidiary undertaking;

b) in the Groups consolidated financial statements?