Questions
22754 Corporate Accounting - Autumn 2025 Online Self-study Quiz (Module 2A)
Single choice
The key characteristic that determines when consolidated financial statements should be prepared is:
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
The question asks for the key characteristic that determines when consolidated financial statements should be prepared.
First, note that no answer options are provided to evaluate in comparison. However, the standard criterion used in practice (and in IFRS guidance) is control.
Optionally, we can outline what ......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
Question5 According to AASB 10 / IFRS 10 Consolidated Financial Statements, which of the following factors indicate the existence of control by an investor over an investee? [table] 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 have significant influence over the operating policies of an entity so as to obtain benefits. IV. | Ownership of more than 50% of the voting rights in the subsidiary. [/table] I, II and III only II and IV only I and IV only None of the options are correct IV only ResetMaximum marks: 1 Flag question undefined
Question1 On 1 July 2024, Quest Ltd acquired 60% of the share capital of Pan Ltd for a cash consideration of $500,000. At the date of acquisition, Pan Ltd’s total equity was comprised of: [table] Share capital | $100,000 Retained profits 1/7/24 | $300,000 [/table] At the acquisition date all identifiable assets and liabilities of Pan Ltd were recorded at their fair values. The company tax rate is 30%. An extract of trial balances of Quest Ltd and Pan Ltd as at 30 June 2025 (one year after acquisition) are provided below: The group balance sheet at 30 June 2025 will include in the equity section: [table] Share capital | $600,000 Retained profits | $960,800 Non-controlling interest (NCI) | $227,200 [/table] [table] Share capital | $600,000 Retained profits | $860,000 Non-controlling interest (NCI) | $227,200 [/table] [table] Share capital | $600,000 Retained profits | $1,000,000 Non-controlling interest (NCI) | $246,800 [/table] [table] Share capital | $600,000 Retained profits | $860,000 Non-controlling interest (NCI) | $160,000 | [/table] [table] Share capital | $700,000 Retained profits | $1,000,000 Non-controlling interest (NCI) | $246,800 [/table] ResetMaximum marks: 1 Flag question undefined
At balance date, Company A has 40% of the voting rights in Company B. In addition Company A holds potential voting rights in Company B amounting to 6% that are currently exercisable, and a further 9% of voting rights in Company B that can be exercised in two years’ time. Which of the following statements is correct?
In a consolidated group of entities, control over the subsidiaries in the group:
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!