QUESTION 1: A) Define associate, according to MFRS 128 Investment in Associates. You are also required to list and brief

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Question 1 A Define Associate According To Mfrs 128 Investment In Associates You Are Also Required To List And Brief 1 (53.89 KiB) Viewed 40 times

QUESTION 1: A) Define associate, according to MFRS 128 Investment in Associates. You are also required to list and briefly explain two (2) ways that, an investor may exercise significant influence in the investee company. (8 marks) B) Intern Co acquired 16 million ordinary shares in Vallay for RM 56 million. The issued share capital of Vallay comprised 100 million ordinary shares. Intern Co also has share options that gives it the right to acquire another 12 million ordinary shares in Vallay. If Intern Co exercises its rights, the enlarged share capital of Vallay will be 112 million shares. Discuss the accounting treatment of the Vallay's investment in the financial statement of Intern Co and its consolidated financial statements. (12 marks)