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XRQ-4 Please do not copy other answers. This is a different question. If copied from other answers I will downvote and report your account .
XRQ-4 Please do not copy other answers. This is a different question. If copied from other answers I will downvote and report your account . Q1.
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You will know that during the year we made a strategic long-term Investment in Sandy, an entity which is a vital part of our supply chain. I believe we purchased 40% of the shares, which carry one vote cach, and that this gave us the right to appoint four of the ten directors. The other six directors are independent of each other, they don't always agree when voting. I was expecting to see Sandy Included as a subsidiary in our consolidated financial statements but instead the Investment has been shown as a single figure in our consolidated statement of financial position. The carrying amount of the investment is presented as $40 millon but, given the share price, I have calculated the fair value as $42 million. I thought that equity Investments that weren't consolidated needed to be measured at fair value. Please explain: 1. Why we aren't including Sandy as a subsidiary in our consolidated financial statements. 2. What method will have been used to arrive at the carrying amount or $40 milion rather than measuring the investmontat fair value
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