Exam 23: Consolidation: Controlled Entities

The key criterion for the consolidation of the separate financial statements of entities is:

The entity that is represented by a single set of consolidated financial statements known as a consolidated financial report, is:

Which is not one of the three elements of control?

In a business combination:

Two entities A Limited and B Limited together form a third entity, C Limited. C Limited acquires A Limited and B Limited. In this situation, IFRS 3 Business Combinations adjudges that:

Truong Limited acquired 60% of the shares of Quang Limited through the Australian Securities Exchange. The share acquisition cost Truong Limited $500 000. As a result of the share acquisition, Truong Limited gained control over Quang Limited. In its accounting records, Truong will recognise:

A single set of financial statements, that combines the separate sets of financial statements for a number of entities, which are managed as a single economic entity, is known as:

In a consolidated group of entities, control over the subsidiaries in the group:

According to IFRS 10 Consolidated Financial Statements, which of the following factors indicate the existence of control? I. Possessing existing rights that give the current ability to direct the relevant activities. II. Shared power in the governance of financial and operating policies of another entity so as to obtain benefits. III. The power to govern the operating policies of an entity so as to obtain benefits. IV. Ownership of more than 50% of the voting power in the subsidiary.

According to IFRS 12 Disclosure of Interests in Other Parties, parent entities are required to disclose: I. Summarised financial information about each subsidiary. II. A list of significant investments in subsidiaries. III. If the subsidiary is not wholly owned, the names of all other members. IV. The country of incorporation of subsidiaries.

Which of the following is correct in relation to rights in the context of control?

The process of aggregating individual sets of financial statements to produce consolidated financial statements requires:

A Ltd is a listed public company and has an 80% controlling interest in B Pty Ltd. B Pty Ltd is the parent of C Pty Ltd. In which of the following situations will B Pty Ltd not be required to prepare consolidated financial statements?

A group of entities comprised of A Limited (parent entity), B Limited (subsidiary entity) and C Limited (subsidiary entity) have the following Accounts Receivable balances: $\blacktriangleright$ A Limited $12 000 $\blacktriangleright$ B Limited $15 000 $\blacktriangleright$ C Limited $10 000 The consolidated financial statements show the following amount as the consolidated Accounts Receivable balance:

The main characteristic of a structured entity according to IFRS 12 is that:

When one entity controls the business operations of another entity, the business combination results in the following type of relationship:

Control is automatically presumed to exist where the parent either directly or indirectly through subsidiaries owns:

In a situation where a controlling entity has delegated control to another entity, the parent is presumed to be:

For one entity to control another entity, the percentage of share ownership held by the controlling entity:

Which of the following statements applies to reverse acquisitions? Tin accou acquirer is identified as accounting acquiree.ontrolling entity; Other assets (in the case where equity instruments