Dilley Co

I think the 1st para of the answer explains this - it is a provision of IFRS 10 that "substantive rights" must be considered in the assessment of power. "For a right to be substantive, the holder must have the practical ability to exercise that right." In this scenario there is nothing to prevent Hughes from acquiring remaining 60% so effectively controls Dilley through holding options that it can (and presumably will) exercise.

So should we consolidate from 1 May 2017 ? So no equity accounting at all ?

Also sir part b of same question says FV should be recognised as a current asset . Hows it an asset ? where can i get more info on the accounting treatment of this issue

It will be consolidated from when control was acquired - so assuming the options were acquired at the same time as the 40% that would be 1 May 2017. Of course, when during the year control was acquired is relevant only to the SoPL (for time apportioning results). Forward options (whether for a currency or commodity) are financial assets - the mention of "derivatives" should have rung a bell that these are financial instruments accounted for in accordance with IFRS 9. This is assumed knowledge of SBR (Chapter 15) and should have been encountered also in FR and FM.