PUMASA AKO Company and its subsidiaries own the following properties that are accounted for in accordance with international accounting standards: Land held by the parent for undetermined use A vacant building owned by the parent and to be leased out under an operating lease Property held by a subsidiary, a real estate firm, in the ordinary course of business Property held by the parent for use in production Building owned by a subsidiary and for which the subsidiary provides security and maintenance services to the lessees Land leased by the parent to a subsidiary under an operating lease 6,000,000 2,500,000 2,000,000 4,000,000 2,000,000 2,500,000 Property under construction for use as investment property Land held for future factory site Machinery leased out by the parent to an unrelated party under an operating lease 4,000,000 3,500,000 1,000,000 How much is the total investment property that should be reported in the consolidated statement of financial position of PUMASA AKO Company and its subsidiaries?

How does a parent company determine the appropriate method for translating the financial statements of a foreign subsidiary?

Problem 22-1 (IFRS) Classic Company and its subsidiaries own the following properties that are accounted for in accordance with international accounting standards: Land held by the parent for undetermined use 5,000,000 A vacant building owned by the parent and to be leased out under an operating lease Property held by a subsidiary, a real estate firm, in the ordinary course of business Property held by the parent for use in production Building owned by a subsidiary and for which the subsidiary provides security and maintenance services to the lessees Land leased by the parent to a subsidiary under an operating lease 2,500,000 Property under construction for use as investment property Land held for future factory site Machinery leased out by the parent to an unrelated party under an operating lease 1,000,000 Required: 1. Compute the total investment property that should be reported in the consolidated statement of financial position of Classic Company and its subsidiaries. 2. Indicate…

Parent Ltd (Parent) controls a subsidiary Sub Ltd (Sub), in which it owns 70 per cent of the issued capital since 30 June 20X3. The following transactions are relevant for the preparation of the consolidated financial statements for the financial year ending 30 June 20X7. Transaction 1:  During the financial year ending 30 June 20X4, Sub sold an item of plant to Parent at a loss. Parent is still using the plant at 30 June 20X7. Transaction 2:  Sub paid an interim dividend in August 20X5. Parent is exempt from income tax on dividends received from the subsidiary.  Transaction 3:  During the financial year ending 30 June 20X7, Parent sold inventory to Sub for a price greater than its cost to Parent. One-third of this inventory is still on hand at 30 June 20X7.  Transaction 4:  On 1 November 20X6, Parent borrowed $50 000 from Sub at an interest rate of 10 per cent per annum. The interest on the loan is payable every six months starting 1 May 20X7. The loan is still outstanding at 30 June…

a) Discuss the related party disclosures required in the financial statements of Terrier plc only. b) Explain why such disclosures are important to the user of financial statements