Entity a Holds 75% Ownership of Entity B's 100,000 Shares

Multiple Choice

Entity A holds 75% ownership of Entity B's 100,000 shares. For its separate financial statements, Entity A accounts for the shares at fair value under IFRS 9 (meaning that unit of account is each share) . For its consolidated financial statements, Entity A accounts for the shares as a cash-generating unit. The quoted price is $10 per share, and there is a $2 control premium per share. What would be the fair value for the separate and consolidated financial statements?

A) Separate statements - $750,000; Consolidated statements - $900,000
B) Separate statements - $750,000; Consolidated statements - $750,000
C) Separate statements - $750,000; Consolidated statements - $600,000