In the Situation in Which a Subsidiary Is Only Controlled

Multiple Choice

In the situation in which a subsidiary is only controlled temporarily,AASB 127 requires:

A) The investment be recorded at fair market value and any gain or loss on acquisition recognised immediately in the income statement.
B) The subsidiary to be treated as an associate and equity accounting applied.
C) The results of the subsidiary for the period of time that it was controlled should be included in the consolidated accounts.
D) The investment to be reported at cost and dividends be accrued when declared.
E) None of the given answers.