CONVEX Ltd. is a new company that was established on 1st January, 2020 to oversee theproduction of coronavirus vaccines for Ghana. On 1st July, 2020, CONVEX Ltd. acquired 75%shares in CONCAVE Ltd., a...

Extracted text: CONVEX Ltd. is a new company that was established on 1st January, 2020 to oversee theproduction of coronavirus vaccines for Ghana. On 1st July, 2020, CONVEX Ltd. acquired 75%shares in CONCAVE Ltd., a pharmaceutical company, to speed up the vaccine production. As anew graduate from UGBS, CONVEX Ltd. has employed you as their accountant. At a managementmeeting held, a number of issues were raised about how CONVEX Ltd. should deal with itstransactions and investment in CONCAVE Ltd. and the need to conduct financial ratio analysis todetermine the profitability and sustainability of CONCAVE Ltd. Provide your views on how the following issue should be addressed. ISSUE CONVEX Ltd. is planning to sell 30% of their shares to another company who wants to supportlocal production of the vaccine. How will this transaction affects the preparation of CONVEX Ltd.financial statements for the next accounting period?