Exam 29: Consolidation: Non-Controlling Interest

Disclosure of the non-controlling interest's share of consolidated equity is required in which of the following financial statements?

Marion Limited paid $180 000 for 60% of the shares in Lucia Limited. At the date of acquisition Lucia Limited had share capital of $160 000 and retained earnings of $90 000 and all of Lucia Limited's assets and liabilities were recorded at fair value, except for plant that had a fair value of $40 000 more than its carrying amount. The company tax rate was 30%. The fair value of identifiable net assets acquired by Marion Limited amounted to:

Which of the following statements is correct?

Non-controlling interest is entitled to a part of the equity of the:

The intragroup transactions considered for NCI are normally those involving:

On a consolidation worksheet, the non-controlling interest columns are used to:

In respect to the intragroup services provided by a partly-owned subsidiary to the parent, the NCI adjustment required is a debit to NCI of:

Kenny Ltd holds a 60% interest in Swan Ltd. Kenny Ltd sells inventory to Swan Ltd during the year for $40 000. The inventories originally cost Kenny Ltd $32 000 when purchased from an external party. At the end of the year 50% of the inventories are still on hand. The tax rate is 30%. The NCI adjustment required in relation to this intragroup transaction is a debit to NCI of:

The step 1 NCI entry to reflect the NCI share of equity at acquisition date:

Ownership interests in a subsidiary entity that do not belong to the parent entity are known as:

Ryan Ltd holds a 75% interest in Tully Ltd. On 1 July 2021, Tully Ltd transferred a depreciable non-current asset to Ryan Ltd at a profit of $15 000. The remaining useful life of the asset at the date of transfer was 5 years and the tax rate is 30%. The impact of the above transaction on the NCI for the year ended 30 June 2023 is:

Which of the following is not a reason for an entity to prefer to have less than 100% ownership interest in a subsidiary?

Which of the following statements is incorrect with regards to a consolidation worksheet in the presence of the non-controlling interest?

Angus Limited owns 80% of the share capital of Boris Limited. Boris Limited paid a dividend of $150 000 during the financial period. The adjustment entries in the consolidation worksheet for the dividend include:

North Limited acquired 80% of the shares in South Limited for $100 000. At acquisition date, share capital in South was $90 000 and reserves amounted to $50 000. All assets and liabilities of South were recorded at fair value at acquisition date. The partial goodwill method is adopted by the group. If the company tax rate was 30%, the NCI will recognise a gain on bargain purchase of:

During the current year, a partly-owned subsidiary has made a transfer from retained earnings to a general reserve. Which of the following lines would appear in the NCI journal relating to the current year's transfer?

Maddie Ltd holds 80% interest in Emily Ltd. Emily Ltd sells inventory to Maddie Ltd during the year for $15 000. The inventories originally cost $13 000 when purchased from an external party. At the end of the year 50% of the inventories are still on hand. The tax rate is 30%. The NCI adjustment required in relation to this transaction is a debit to NCI of:

The following information is required to be disclosed for the non-controlling interest (NCI) except for:

James Limited is a subsidiary of Anastasia Limited. When Anastasia acquired its 75% interest in James, the retained earnings of James were $10 000. At the beginning of the current period James Limited's retained earnings were $40 000. James earned profit after tax of $20 000 during the current period. The total share of the non-controlling interest in the equity of James Limited at the end of the current period is:

The following statements are reasons as to why entities do not use the full goodwill method. Which of these statements is incorrect?