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Problem 1: A British parent entity uses the revaluation model to measure its property, but a Philippine subsidiary uses the cost model. The Philippine subsidiary's directors find the revaluation model too costly to implement. In the consolidated financial statements, is the group allowed to measure the Philippine subsidiary's property under the cost model?
a) YES, the British parent's property shall be adjusted to conform to the subsidiary's accounting policy of cost model.
b) NO, the Philippine subsidiary's property shall be adjusted to conform to the group's accounting policy of revaluation model.
c) YES, both models will be reflected in the consolidated financial statements, but this fact must be disclosed in the notes.
d) None of these, the property is eliminated in the consolidated financial statements
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