Revised vision of IAS 27 (Dec 2011 Q2 Decany)

The revised vision of IAS 27 allows the cost of an investment in a subsidiary to be based on the previous carrying value of the subsidiary rather than on its fair value and some criteria must be met, one of the criteria is that the new parent obtains control of the original entity by issuing equity instruments in exchange for existing equity instruments of the original parent or entity.
here comes the question:
1. in the Q2 Decany, it is clearly that the new parent (Ceed) obtained the interest of original entity (Rant) by paying $98m in cash, so the criteria listed above does not meet at all. how come the examer’s answer says it has been met? and so does the BPP book.
2. The cost of an investment in a subsidiary to be based on the previous carrying value of the subsidiary rather than on its fair value, if all the criteria are satisfied, what does this mean? my understanding is that when the criteria are satisified, a share premium account is set up for the difference between the book value of the investment and the nominal value of the share issued as a purchase consideration. dont know if this is right…
3. When the criteria are not satisfied, and therefore fair value is used, what fair value is this? the value of cosideration received for reorganisation?
PLZ HELP, THX A LOT