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    Rafael Capunpon Vallejos
    The fair value of the non-controlling interest on the date of acquisition should be equal to the non-controlling interest percentage of the fair value of the subsidiary's net assets. Power is the existing right to direct relevant activities of the investee and protective rights cannot give power to the investor. The cost of a business combination that can be included in paid-in capital in excess of par is the direct cost of acquisition and stock issuance costs if shares are issued as consideration. Consolidation elimination entries are made in the parent company's accounting records. Consolidated financial statements are intended primarily for the stockholders of the parent company.

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    Group of Answer Choices

    Uploaded by

    Rafael Capunpon Vallejos
    67 views2 pages
    The fair value of the non-controlling interest on the date of acquisition should be equal to the non-controlling interest percentage of the fair value of the subsidiary's net assets. Power is the existing right to direct relevant activities of the investee and protective rights cannot give power to the investor. The cost of a business combination that can be included in paid-in capital in excess of par is the direct cost of acquisition and stock issuance costs if shares are issued as consideration. Consolidation elimination entries are made in the parent company's accounting records. Consolidated financial statements are intended primarily for the stockholders of the parent company.

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    The fair value of the non-controlling interest on the date of acquisition should be equal to the non-controlling interest percentage of the fair value of the subsidiary's net assets. Power is the existing right to direct relevant activities of the investee and protective rights cannot give power to the investor. The cost of a business combination that can be included in paid-in capital in excess of par is the direct cost of acquisition and stock issuance costs if shares are issued as consideration. Consolidation elimination entries are made in the parent company's accounting records. Consolidated financial statements are intended primarily for the stockholders of the parent company.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    67 views2 pages

    Group of Answer Choices

    Uploaded by

    Rafael Capunpon Vallejos
    The fair value of the non-controlling interest on the date of acquisition should be equal to the non-controlling interest percentage of the fair value of the subsidiary's net assets. Power is the existing right to direct relevant activities of the investee and protective rights cannot give power to the investor. The cost of a business combination that can be included in paid-in capital in excess of par is the direct cost of acquisition and stock issuance costs if shares are issued as consideration. Consolidation elimination entries are made in the parent company's accounting records. Consolidated financial statements are intended primarily for the stockholders of the parent company.

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    © All Rights Reserved
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    of 2

    Which of the following statement is true concerning the fair value of non-controlling interest (NCI) on the

    date of acquisition?
    Group of answer choices
    The fair value of the NCI on the date of acquisition should be less than the NCI percentage of the fair
    value of the net assets of the subsidiary.
    The fair value of the NCI on the date of acquisition should always be raised to the fair value of the net
    assets of the subsidiary.
    The fair value of the NCI on the date of acquisition should be more than the NCI percentage of the fair
    value of the net assets of the subsidiary.
    The fair value of the NCI on the date of acquisition should always be reduced to the fair value of the net
    assets of the subsidiary.

    Which of the following statements, based on IFRS 10 – Consolidated Financial Statements, are true?
    I. Power is the existing right to direct relevant activities of the investee.
    II. Protective rights cannot give power to the investor.
    III. A principal loses control when it delegates decision – making rights to another party.
    IV. Start of consolidation is the date of acquisition of control.
    Group of answer choices
    All statements are true.
    Only statements I, III and IV are true.
    Only statements I, II and IV are true.
    Only statements II, III and IV are true.

    Which of the following cost of business combination can be included in the value charged to Paid – in
    Capital in Excess of Par?
    Group of answer choices
    Direct cost of acquisition.
    Stock issuance cost if share is issued as consideration.
    Direct cost of acquisition and stock issuance cost if stock is issued as consideration.
    Direct and indirect cost of acquisition.

    Consolidation elimination entries are entered on


    Group of answer choices
    The parent company’s accounting records only.
    Both the parent company’s and the subsidiary’s accounting records.
    The subsidiary’s accounting records.
    Neither the parent company’s nor the subsidiary’s accounting records.

    Consolidated financial statements are intended primarily for the use of


    Group of answer choices
    Management of the parent company.
    Stockholders’ of the parent company.
    Creditors of the parent company.
    Taxing authorities.

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