Question 1

Non-controlling indirect interests are entitled to receive dividends in a subsidiary.

Accepted Answer

A) True 
 B)False

Question 2

Control means the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Accepted Answer

A) True 
 B)False

Question 3

The following acquisition analysis relates to a non-sequential acquisition,at the time that Ginger Ltd acquires a controlling interest (acquiring 60 per cent)in Posh Ltd.Posh Ltd had previously acquitted 75 per cent of Scary Ltd. $\begin{array}{|l|r|r|}
\hline & \text { Posh Ltd } & \begin{array}{r}
\text { Ginger Ltd } \
\text { interest }
\end{array} \
\hline \text { Share capital at acquisition date } & 280000 & \text { (a) } \
\text { Retained earnings at acquisition date } & 124000 & \text { (b) } \
\text { Share of post-acquisition earnings of Scary Ltd attributable to Posh } & 90000 & \text { (c) } \
\text { Ltd prior to Ginger's acquisition of Posh Ltd } & & \
\text { Increase in retained earnings of Scary Ltd } & & \
\text { ((d) }-56000) & & \
\hline
\end{array}$ What are the figures represented by (a)and (b)in the table above?

Accepted Answer

A) (a) €210 000; (b) €93 000 
B) (a) €168 000; (b) €74,400 
C) (a) €126 000; (b) €55,800 
D) (a) €280 000; (b) €124 000 
A) (a) €210 000; (b) €93 000 
B) (a) €168 000; (b) €74,400 
C) (a) €126 000; (b) €55,800 
D) (a) €280 000; (b) €124 000

Question 4

A Plc owns 85% of the issued capital of B Plc and B Plc owns 95% of the issued capital of C Plc.What is the total outside equity interest in C Plc?

Accepted Answer

A) 23.5% 
B) 10.5% 
C) 19.25% 
D) 15% 
A) 23.5% 
B) 10.5% 
C) 19.25% 
D) 15%

Question 5

A Plc owns 75% of the issued capital of B Plc and B Plc owns 65% of the issued capital of C Plc.What is the total outside equity interest in C Plc?

Accepted Answer

A) 48.75% 
B) 35% 
C) 25.75% 
D) 51.25% 
A) 48.75% 
B) 35% 
C) 25.75% 
D) 51.25%

Question 6

The elimination of the parent entity's investment in a subsidiary will be done by eliminating the investment against the parent entity's direct and indirect ownership interest in pre-acquisition share capital and reserves.

Accepted Answer

A) True 
 B)False

Non-controlling indirect interests are entitled to receive dividends in a subsidiary.

Control means the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

A Plc owns 85% of the issued capital of B Plc and B Plc owns 95% of the issued capital of C Plc.What is the total outside equity interest in C Plc?

A Plc owns 75% of the issued capital of B Plc and B Plc owns 65% of the issued capital of C Plc.What is the total outside equity interest in C Plc?

The elimination of the parent entity's investment in a subsidiary will be done by eliminating the investment against the parent entity's direct and indirect ownership interest in pre-acquisition share capital and reserves.

An Overview of the International External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Financial Accounting

An Overview of Accounting for Assets

Depreciation of Property, Plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

An Overview of Accounting for Liabilities

Accounting for Leases

Share Capital, Reserves and Share Options Employee Bonus Schemes

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Income Taxes

The Statement of Cash Flows

Events Occurring After the Reporting Date

Related-Party Disclosures

Earnings Per Share

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

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Exam 23: Further Consolidation Issues III: Accounting for Indirect Ownership Interest

Non-controlling indirect interests are entitled to receive dividends in a subsidiary.

Control means the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

A Plc owns 85% of the issued capital of B Plc and B Plc owns 95% of the issued capital of C Plc.What is the total outside equity interest in C Plc?

A Plc owns 75% of the issued capital of B Plc and B Plc owns 65% of the issued capital of C Plc.What is the total outside equity interest in C Plc?

The elimination of the parent entity's investment in a subsidiary will be done by eliminating the investment against the parent entity's direct and indirect ownership interest in pre-acquisition share capital and reserves.

An Overview of the International External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Financial Accounting

An Overview of Accounting for Assets

Depreciation of Property, Plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

An Overview of Accounting for Liabilities

Accounting for Leases

Share Capital, Reserves and Share Options Employee Bonus Schemes

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Income Taxes

The Statement of Cash Flows

Events Occurring After the Reporting Date

Related-Party Disclosures

Earnings Per Share

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

Filters