Consolidated financial statements are typically prepared when one company has a controlling interest in another unless_ Select one: O a the subsidiary is a finance company O b. financial year-ends of the companies are more than three months apart O cthe parent's securities are not publicly traded O d. the two companies are in unrelated industries, such as real estate and hospitality

Consolidated financial statements are typically prepared when one company has a controlling interest in another unless_ Select one: O a the subsidiary is a finance company O b. financial year-ends of the companies are more than three months apart O cthe parent's securities are not publicly traded O d. the two companies are in unrelated industries, such as real estate and hospitality

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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CONS Group complies with IFRS 10 by consolidating the parent's financial statements at date December 31 with subsidiaries' financial statements at date June 30. Select one: True False
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Parent Co. acquired 90% of the common stock of Subsidiary Co. in a cash-only transaction. In the first consolidated balance sheet issued after this business combination, the noncontrolling interest must be reported as O A. Current assets. O B. Noncurrent assets. O C. Equity. O D. Noncurrent liabilities.
Assume that both the Parent and Subsidiary adopt 31 December as their financial year-end. Further assume that the transactions were conducted on cash basis. For each of the following independent scenarios in each of the independent parts: (1) Prepare all the relevant journal entries in the separate financial statements of the respective companies. (ii) Prepare all the relevant consolidation journal entries for the preparation of the consolidated financial statements of the Parent. (iii) Compare and contrast the accounting treatment/principles that you had applied in the independent scenarios in each part in preparing the journal entries and consolidation journal entries. Part A (a) On 20 December 20x1, a 90%-owned Subsidiary sold a piece of inventory which it bought for $200,000 to its Parent for $300,000. As at 31 December 20x1, that piece of inventory was still with the Parent and the net realisable value of the inventory was $250,000 on this date. (b) On 20 December 20x1, a Parent…
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All the financial statements is consolidated on the date of a business combination of a parent company and subsidiary Select one: True False