Question 1

Parent Ltd owns 20% of S1 Ltd and 80% of S2 Ltd.In addition S2 Ltd owns 70% of S1 Ltd.The total Parent Ltd interest in S1 Ltd is:

Accepted Answer

A)  20% 
B)  76% 
C)  56% 
D)  none of the above 
A)  20% 
B)  76% 
C)  56% 
D)  none of the above

Question 2

Using the data from Question 4 but assuming that Parent Ltd controls S2 Ltd without holding any shares in S2 Ltd.The Parent Ltd indirect interest in S1 Ltd is:

Accepted Answer

A)  100% 
B)  70% 
C)  nil 
D)  none of the above 
A)  100% 
B)  70% 
C)  nil 
D)  none of the above

Question 3

In a multiple consolidation the ownership interests of subsidiaries is determined using:

Accepted Answer

A)  direct ownership interests 
B)  indirect ownership interests 
C)  both direct and indirect ownership interests 
D)  none of the above 
A)  direct ownership interests 
B)  indirect ownership interests 
C)  both direct and indirect ownership interests 
D)  none of the above

Question 4

Discuss the current position of the Corporations Act in respect to reciprocal ownership interests.

Accepted Answer

Reciprocal ownership interests:
- Recipr

Question 5

The sequence of acquisition dates in a tiered group is irrelevant to the consolidation process for indirect NCI

Accepted Answer

A) True 
 B)False

Question 6

Cross shareholdings between subsidiaries are:

Accepted Answer

A)  legal under the Corporations Act 
B)  illegal under the Corporations Act 
C)  not covered by the Corporations Act 
D)  none of the above 
A)  legal under the Corporations Act 
B)  illegal under the Corporations Act 
C)  not covered by the Corporations Act 
D)  none of the above

Question 7

Parent Ltd owns 90% of S1 Ltd and S1 Ltd owns 60% of S2 Ltd.Parent Ltd's indirect ownership interest in S2 Ltd is:

Accepted Answer

A)  90% 
B)  60% 
C)  54% 
D)  none of the above 
A)  90% 
B)  60% 
C)  54% 
D)  none of the above

Parent Ltd owns 20% of S1 Ltd and 80% of S2 Ltd.In addition S2 Ltd owns 70% of S1 Ltd.The total Parent Ltd interest in S1 Ltd is:

Using the data from Question 4 but assuming that Parent Ltd controls S2 Ltd without holding any shares in S2 Ltd.The Parent Ltd indirect interest in S1 Ltd is:

In a multiple consolidation the ownership interests of subsidiaries is determined using:

Discuss the current position of the Corporations Act in respect to reciprocal ownership interests.

The sequence of acquisition dates in a tiered group is irrelevant to the consolidation process for indirect NCI

Cross shareholdings between subsidiaries are:

Parent Ltd owns 90% of S1 Ltd and S1 Ltd owns 60% of S2 Ltd.Parent Ltd's indirect ownership interest in S2 Ltd is:

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Fair Value Adjustments and Tax Effects

Intra-Group Transactions

Non-Controlling Interest

Consolidated Cash Flow Statements

Accounting for Joint Arrangements

Accounting for Associates and Joint Ventures: the Equity Method

Translation and Consolidation of Foreign Currency Financial Statements

Segment Reporting by Diversified Entities

Filters

Exam 6: Partly-Owned Subsidiaries: Indirect Non-Controlling Interest

Parent Ltd owns 20% of S1 Ltd and 80% of S2 Ltd.In addition S2 Ltd owns 70% of S1 Ltd.The total Parent Ltd interest in S1 Ltd is:

Using the data from Question 4 but assuming that Parent Ltd controls S2 Ltd without holding any shares in S2 Ltd.The Parent Ltd indirect interest in S1 Ltd is:

In a multiple consolidation the ownership interests of subsidiaries is determined using:

Discuss the current position of the Corporations Act in respect to reciprocal ownership interests.

The sequence of acquisition dates in a tiered group is irrelevant to the consolidation process for indirect NCI

Cross shareholdings between subsidiaries are:

Parent Ltd owns 90% of S1 Ltd and S1 Ltd owns 60% of S2 Ltd.Parent Ltd's indirect ownership interest in S2 Ltd is:

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Fair Value Adjustments and Tax Effects

Intra-Group Transactions

Non-Controlling Interest

Consolidated Cash Flow Statements

Accounting for Joint Arrangements

Accounting for Associates and Joint Ventures: the Equity Method

Translation and Consolidation of Foreign Currency Financial Statements

Segment Reporting by Diversified Entities

Filters