Describe the accounting treatment for PT X for its ownership of PT Y and PT Z when: 1. Acquisition of additional shares in early 2019. 2. Sale of partial ownership towards the end of 2020.
n early 2019, PT X acquired share ownership of 2 entities, namely PT Y and PT Z with the following information: • PT X acquired a 30% stake in PT Y, where previously PT X owned 40% of PT Y. Based on the analysis conducted by PT X, the additional 30% share ownership resulted PT X has control over PT Y. • PT X acquired a 20% stake in PT Z, previously PT X owned 60% of PT Z. Based on the analysis conducted by PT X, on the initial ownership of 60% of PT Z's shares, PT X owns control of PT Z. With the additional 20% ownership of the shares, PT X has permanent ownership has control over PT Z. Towards the end of 2020, PT X sold part of its ownership to the two companies, with the following information: • PT X sold 15% of its ownership in PT Y's shares. Based on the analysis conducted by PT X, the sale did not cause PT X to lose control of PT Y. • PT X sold 40% of its ownership in PT Z's shares. Based on the analysis conducted by PT X, the sale caused PT X to lose control of PT Z. Describe the accounting treatment for PT X for its ownership of PT Y and PT Z when: 1. Acquisition of additional shares in early 2019. 2. Sale of partial ownership towards the end of 2020.
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