Exam 29: Consolidation: Non-Controlling Interest

If a gain on bargain purchase arises on a business combination, the non-controlling interest:

A Ltd holds a 60% interest in B Ltd. B Ltd sells inventory to A Ltd during the year for $10 000. The inventories originally cost $7 000 when purchased from an external party. At the end of the year all inventories are still on hand. The tax rate is 30%. The NCI adjustment to this intragroup transaction is a debit to NCI of:

Changes in equity in the current period that must be identified for the step 3 NCI entry include:

Company A Limited owns 90% of the share capital of Company B Limited. Company B Limited paid a dividend of $20 000 during the financial period. The NCI adjustment entries in the consolidation worksheet for the dividend include:

Xin Limited paid $12 000 for 75% of the shares in Yan Limited. At the date of acquisition Yan Limited had equity as follows: Share capital $10 000 Retained earnings $5 000 Other reserves $3 000 All of Yan Limited's assets and liabilities were recorded at fair value. The fair value of identifiable net assets acquired by Xin Limited amounted to:

Non-controlling interest is entitled to as:

When preparing a set of consolidated financial statements, the pre-acquisition entry relates to:

A non-controlling interest in a subsidiary entity is entitled to a share of the following items:

Jiminez Limited acquired 80% of the shares in Mustang Limited for $150 000. At acquisition date, share capital in Mustang was $150 000 and reserves amounted to $50 000. All assets and liabilities of Mustang were recorded at fair value at acquisition date. The partial goodwill method is adopted by the group. If the company tax rate was 30%, the NCI will recognise a gain on bargain purchase of:

Non-controlling interest is classified, according to AASB 10 Consolidated Financial Statements, as:

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

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 since acquisition date and the beginning of the financial period. IV Equity of the subsidiary at acquisition date.

A Ltd holds a 60% interest in B Ltd. On 1 July 2017 B Ltd transferred a depreciable non-current asset to A Ltd at a profit of $5 000. The remaining useful life of the asset at the date of transfer was 4 years and the tax rate is 30%. The impact of the above transaction on the NCI share of profit for the year ended 30 June 2018 is:

Ownership interests in a subsidiary entity that do not belong to the parent entity are known as:

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

In respect to the intragroup services provided by a partly-owned subsidiary to the parent, the NCI adjustment required is a debit to NCI of:

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

Disclosure of NCI's share of consolidated equity is required in the following financial statements:

Jiminez Limited acquired 80% of the shares in Mustang Limited for $180 000. At acquisition date, share capital in Mustang was $100 000 and reserves amounted to $50 000. All assets and liabilities of Mustang were recorded at fair value at acquisition date except buildings which was recorded at $10 000 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:

Which of the following is not a reason for an entity's preference to have less than 100% ownership interest in some subsidiaries: