P Ltd acquired 80% of S Ltd for a consideration of $500 000.At the date of acquisition,the following information is available: $\begin{array}{l} \text { S Ltd issued capital } &\$350,000\\ \text { Retained earnings } &\$ 160,000 \\ \text { Fair value of land }& \$ 200,000\\\text { (carrying amount } \$ 100000 \text { ) }\\\text { Fair value of } \mathrm{NCl}&\$150,000\\\text { Tax rate } 30 \% \end{array}$ - Using the fair value (100% goodwill)method,the goodwill on acquisition is:

A) $140 000. B) $186 000. C) $70 000. D) none of the above. A) $140 000. B) $186 000. C) $70 000. D) none of the above.

P Ltd acquired 80% of S Ltd for a consideration of $500 000.At the date of acquisition,the following information is available: $\begin{array}{l} \text { S Ltd issued capital } &\$350,000\\ \text { Retained earnings } &\$ 160,000 \\ \text { Fair value of land }& \$ 200,000\\\text { (carrying amount } \$ 100000 \text { ) }\\\text { Fair value of } \mathrm{NCl}&\$150,000\\\text { Tax rate } 30 \% \end{array}$ - Under the fair value (100% of goodwill)method used in Question 14,the NCI in goodwill is:

A) $34 000. B) $104 000. C) $150 000. D) none of the above. A) $34 000. B) $104 000. C) $150 000. D) none of the above.

P Ltd acquired 80% of S Ltd for a consideration of $500 000.At the date of acquisition,the following information is available: $\begin{array}{l} \text { S Ltd issued capital } &\$350,000\\ \text { Retained earnings } &\$ 160,000 \\ \text { Fair value of land }& \$ 200,000\\\text { (carrying amount } \$ 100000 \text { ) }\\\text { Fair value of } \mathrm{NCl}&\$150,000\\\text { Tax rate } 30 \% \end{array}$ -Using the proportionate interest goodwill method,goodwill on acquisition is:

A) $92 000. B) $12 000. C) $36 000. D) none of the above. A) $92 000. B) $12 000. C) $36 000. D) none of the above.

Exam 5: Non-Controlling Interest

P Ltd purchased 80% of the issued ordinary shares of S Ltd.S Ltd capital structure is: Ordinary shares-200 000 fully paid shares x $1 Preference shares-50 000 fully paid shares x $1 Preference shares have the same rights as ordinary shares. The NCI in S Ltd is:

(Multiple Choice)

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Question 21

The consolidation technique of NCI allocation is based on the proposition that non-controlling shareholders have an ownership interest in group equity.

(True/False)

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Question 22

The measurement of the NCI allocation will be based on the subsidiary company's equity account balances.

(True/False)

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Question 23

The fair value method of measuring NCI includes an amount representing the non-controlling shareholder's interest in goodwill.

(True/False)

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Question 24

Non-controlling interest at date of acquisition must be measured using:

(Multiple Choice)

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Question 25

If A owns 80% of B and B owns 75% of C,A's ownership interest in B and C is characterised as direct.

(True/False)

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Question 26

P Ltd acquired 80% of S Ltd for a consideration of $500 000.At the date of acquisition,the following information is available: S Ltd issued capital \3 50,000 Retained earnings \ 160,000 Fair value of land \ 200,000 (carrying amount \ 100000 ) Fair value of \1 50,000 Tax rate 30\% - Using the fair value (100% goodwill)method,the goodwill on acquisition is:

(Multiple Choice)

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Question 27

In preparing a consolidated financial report,the parent entity consolidates:

(Multiple Choice)

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Question 28

Where the full goodwill on acquisition is recognised in the consolidated financial statements,any impairment loss will be allocated between parent interest and NCI on the same basis as profit or loss.

(True/False)

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Question 29

In the preparation of consolidated financial statements,the measurement of a non-controlling interest in the shareholders' equity of a subsidiary at the reporting date may be affected by:

(Multiple Choice)

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Question 30

P Ltd acquired 80% of S Ltd for a consideration of $500 000.At the date of acquisition,the following information is available: S Ltd issued capital \3 50,000 Retained earnings \ 160,000 Fair value of land \ 200,000 (carrying amount \ 100000 ) Fair value of \1 50,000 Tax rate 30\% - Under the fair value (100% of goodwill)method used in Question 14,the NCI in goodwill is:

(Multiple Choice)

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Question 31

How is the fair value of the shares representing an NCI calculated in the absence of an active market for the company's shares?

(Essay)

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Question 32

P Ltd acquired 80% of S Ltd for a consideration of $500 000.At the date of acquisition,the following information is available: S Ltd issued capital \3 50,000 Retained earnings \ 160,000 Fair value of land \ 200,000 (carrying amount \ 100000 ) Fair value of \1 50,000 Tax rate 30\% -Using the proportionate interest goodwill method,goodwill on acquisition is:

(Multiple Choice)

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Question 33

The non-controlling interest share of a subsidiary's retained earnings will be calculated as a percentage of:

(Multiple Choice)

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Question 34

Is the proprietary concept of consolidation consistent with the proportional consolidation method?

(Essay)

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Question 35

In the calculation of NCI,share of profit consolidation adjusting entries that do not change group profit will:

(Multiple Choice)

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Question 36

The ownership interests in a group which includes partly owned subsidiaries consist of:

(Multiple Choice)

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Question 37

Showing 21 - 37 of 37

P Ltd purchased 80% of the issued ordinary shares of S Ltd.S Ltd capital structure is: Ordinary shares-200 000 fully paid shares x $1 Preference shares-50 000 fully paid shares x $1 Preference shares have the same rights as ordinary shares. The NCI in S Ltd is:

The consolidation technique of NCI allocation is based on the proposition that non-controlling shareholders have an ownership interest in group equity.

The measurement of the NCI allocation will be based on the subsidiary company's equity account balances.

The fair value method of measuring NCI includes an amount representing the non-controlling shareholder's interest in goodwill.

Non-controlling interest at date of acquisition must be measured using:

If A owns 80% of B and B owns 75% of C,A's ownership interest in B and C is characterised as direct.

In preparing a consolidated financial report,the parent entity consolidates:

Where the full goodwill on acquisition is recognised in the consolidated financial statements,any impairment loss will be allocated between parent interest and NCI on the same basis as profit or loss.

In the preparation of consolidated financial statements,the measurement of a non-controlling interest in the shareholders' equity of a subsidiary at the reporting date may be affected by:

How is the fair value of the shares representing an NCI calculated in the absence of an active market for the company's shares?

The non-controlling interest share of a subsidiary's retained earnings will be calculated as a percentage of:

Is the proprietary concept of consolidation consistent with the proportional consolidation method?

In the calculation of NCI,share of profit consolidation adjusting entries that do not change group profit will:

The ownership interests in a group which includes partly owned subsidiaries consist of:

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Fair Value Adjustments and Tax Effects

Intra-Group Transactions

Partly-Owned Subsidiaries: Indirect 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

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