IFRS Group Accounting

While studying the IFRS accounting rules, I encountered a specific example that has left me with uncertainties regarding the journal entries. I’m seeking clarification and wondered if anyone in the community could provide insights or answers to help me better understand. Your assistance would be greatly appreciated. Thank you!

In 2019 AB Volvo planned to acquire shares of AB Volvo Penta and started to negotiate in September 2019 with the former shareholders. At the beginning of January 2020 AB Volvo and the former shareholders agreed on a purchase price of 510. Transaction costs amount to 50 for advisers. In June 2020 the acquisition contract was signed by both parties, cash was transferred, and a new management was announced.

The balance sheet of AB Volvo Penta on 01.01.2020 showed the following values (in SEK M):

Assets:
Tangible assets 850
Inventories 350
Cash and cash equivalents 50
Total 1250

Equity and liabilities:
Equity 565
Financial liabilities 450
Trade payables 235
Total 1250

The balance sheet of AB Volvo Penta on 30.06.2020 showed the following values:

Assets:
Tangible assets 780
Inventories 250
Cash and cash equivalents 190
Total 1220

Equity and liabilities:
Equity 570
Financial liabilities 430
Trade payables 220
Total 1220

The balance sheet of the parent’s individual annual report is available on the internet.
The percentage of holding is stated in the Group’s annual report (100%).
AB Volvo Penta’s tangible assets include property which contained unrealised gains of 8 on 01.01.2020 and 10 on 30.06.2020 and equipment which included unrealised gains of 10 on 01.01.2020 and 12 on 30.06.2020 with a remaining useful life of 10.
Note: Any effect due to deferred tax shall be disregarded. There are no service exchanges between these two companies. For a practice purpose consolidation is made only between the parent and one subsidiary/joint venture or associate.

Q1: Carry out all necessary steps on initial recognition. Which entries have to be made in 2020?
 
Solution:
 
Q2: Which entries need to be done as of 31.12.2021 and as of 31.12.2022?
 
Solution: