Exam 25: Consolidation: Principles and Accounting Requirements

Huey Limited and Dewey Limited are separate entities that jointly own Louie Limited. The consolidated financial statements of Huey Group would consist of financial statements of:

Which of the following statements is incorrect according to AASB 12?

Use the following information to answer questions On 1 July 2008, P Limited acquired all the issued shares of S Limited for $50 000 when the equity of S Limited consisted of: Share Capital \ 35,000 Retained Earnings \ 15,000 During the year ended 30 June 2009, S Limited paid an interim dividend of $5 000 from profits earned before 1 July 2008. -The pre-acquisition elimination entry at 30 June 2010 will be:

Nelson Limited has two subsidiary entities, Poggi Limited and Holly Limited. Nelson Limited owns 100% of the shares in both entities. Details of issued share capital are: Nelson Limited $100 000 Poggi Limited $30 000 Holly Limited $15 000 The worksheet adjustment entry made in order to determine the amount of consolidated share capital is:

In a business combination the revaluation of non-current assets in the records of the subsidiary means that the subsidiary has effectively adopted the:

Parent Limited acquired 100% of a subsidiary on 1 July 20X7. At acquisition date the subsidiary had the following equity items: Retained earnings $24 000 Share capital $33 000 Business combination revaluation reserve $10 000 In the year following the acquisition the subsidiary paid a bonus dividend of $14 000 out of pre-acquisition retained earnings. The following consolidation adjustment is needed in the consolidation worksheet for 30 June 20X8:

When preparing consolidated financial statements, adjustments for pre-acquisition equity and inter-entity transactions are recorded:

In which of the following situations is an investor more likely to have power over an investee when the investor holds less than 50% of the investee's shares?

Which of the followings is not the reason of preparing consolidated statements?

In determining whether a parent-subsidiary relationship exists: