Exam 21: Consolidation: Non-Controlling Interest

Jack Limited acquired 80% of the share capital and reserves of Jill Limited for $300 000.Share capital was $200 000 and reserves amounted to $100 000.All assets and liabilities were recorded at fair value except buildings which was recorded at $20 000 below fair value.The fair value of the NCI at the date of Jack's acquisition was $70 000 and the full goodwill method is adopted by the group.If the company tax rate was 30%,the total goodwill in relation to this business combination amounts to:

The full effects of transactions between entities within a group are eliminated on consolidation,regardless of the existence of an NCI.

A consolidated statement of comprehensive income discloses the non-controlling interest as:

A non-controlling interest is entitled to a share of which of the following items? I Equity of the group entity at acquisition date II Current period profit or loss of the subsidiary entity III Changes in equity of the subsidiary between acquisition date and the beginning of the financial period IV Equity of the subsidiary at acquisition date

During the current year,a partly owned subsidiary has made a transfer from a general reserve to retained earnings.Which of the following lines would appear in the NCI consolidation entry relating to the current year transfer?

Which of the following statements is incorrect?

King Limited paid $220 000 for 70% of Prince Limited.At the date of acquisition Prince Limited had share capital of $200 000 and retained earnings of $100 000 and all of Prince Limited's assets and liabilities were r ecorded at fair value.The fair value of identifiable net assets acquired by King Limited amounted to:

If a subsidiary is not wholly owned by the parent there are two ownership interests which are known as the:

When presenting a consolidated statement of financial position,the non-controlling interest is:

Where a subsidiary is partly owned by a parent and an NCI,any goodwill arising in the acquisition analysis is required to be allocated between that attributable to the parent and that attributable to the NCI.

When preparing consolidated financial statements,any profit or loss that arises in relation to the intragroup transfer of services is regarded as:

Which of the following statements is correct?

When presenting a consolidated statement of comprehensive income,the non-controlling interest is shown as:

The calculation of the NCI share of equity at a point in time is done in three steps.

Where the NCI is measured at fair value at acquisition date,which of the following methods is being used?

The NCI share of different categories of equity is required to be separately disclosed on the face of the consolidated statement of financial position.

Which of the following statements is incorrect?

Under the conceptual framework for international financial reporting a non-controlling interest fits the definition of:

Alexandra Limited acquired 80% of the share capital and reserves of Heads Limited for $300 000.Share capital was $200 000 and reserves amounted to $100 000.All assets and liabilities were recorded at fair value except buildings which was recorded at $20 000 below fair value.If the company tax rate was 30%,and the partial goodwill method was adopted,the NCI share of equity at the date of acquisition was:

According to AASB 10 Consolidated Financial Statements,the term 'non-controlling interest' is defined as: