a) Young plc owns a number of subsidiary companies. During the year Young pic has undertaken the following transactions which have not yet been accounted for in full:
(1) On 1 July 2018 Young plc purchased 40% of Daquiri Ltd's ordinary shares for a cash payment of £350,000. This investment gave Young pic significant influence over Daquiri Ltd. Daquiri Ltd made a profit of $£ 126,000$ for the year ended 31 December 2018.
The only accounting entries that have been posted are debit investments in the statement of financial position and credit bank. Young plc has not yet accounted for any further entries in relation to Daquiri Ltd in its consolidated financial statements.
(2) On 1 August 2018 Young plc disposed of a subsidiary company, Singapore Ltd, in which it held a $70 \%$ ownership. The only accounting entries that have been posted are debit bank and credt investmerts in the statement of financial position. The directors of Young plc are unsure how to account for a disposal of a subsidiary company in either the individual company accounts or the consolidated financial statements.
(3) On 1 January 2018 Young purchased $70 \%$ of Star GmbH (a company operating in Germany). The directors of Young plc are unsure how to account for the investment in Star $\mathrm{GmbH}$. The orly accounting entries that have been made in relation to this acquisition are debit investments in the statement of financial position and credt bank. In particular the directors of Young ple do not know how to account for:
Statement of profit or loss items;
Statement of financial position items;
Goodwill:

Required
Explain the required IFRS financial reporting treatment of (1) to (3) above in relation to the consolidated financial statements of Young pic for the year ended 31 December 2018. Include all relevant calculations. You should also explain why the specific treatment you identity is appropriate.

Question

a) Young plc owns a number of subsidiary companies. During the year Young pic has undertaken the following transactions which have not yet been accounted for in full:
(1) On 1 July 2018 Young plc purchased 40% of Daquiri Ltd's ordinary shares for a cash payment of £350,000. This investment gave Young pic significant influence over Daquiri Ltd. Daquiri Ltd made a profit of $£ 126,000$ for the year ended 31 December 2018.
The only accounting entries that have been posted are debit investments in the statement of financial position and credit bank. Young plc has not yet accounted for any further entries in relation to Daquiri Ltd in its consolidated financial statements.
(2) On 1 August 2018 Young plc disposed of a subsidiary company, Singapore Ltd, in which it held a $70 \%$ ownership. The only accounting entries that have been posted are debit bank and credt investmerts in the statement of financial position. The directors of Young plc are unsure how to account for a disposal of a subsidiary company in either the individual company accounts or the consolidated financial statements.
(3) On 1 January 2018 Young purchased $70 \%$ of Star GmbH (a company operating in Germany). The directors of Young plc are unsure how to account for the investment in Star $\mathrm{GmbH}$. The orly accounting entries that have been made in relation to this acquisition are debit investments in the statement of financial position and credt bank. In particular the directors of Young ple do not know how to account for:
Statement of profit or loss items;
Statement of financial position items;
Goodwill:
 
Required
Explain the required IFRS financial reporting treatment of (1) to (3) above in relation to the consolidated financial statements of Young pic for the year ended 31 December 2018. Include all relevant calculations. You should also explain why the specific treatment you identity is appropriate.

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