(i) SunBhd acquired 60% interest in RainBhd on 1 January2016. On 1 January 2018, RainBhd acquired 60% interest in CloudyBhd and on 1 January 2020, SunBhd acquired a 40% interest in CloudyBhd. (ii)FanBhd acquired a 70% interest in BallBhd on 1 February 2015. BallBhd acquired an 90% interest in Suria Bhd on 1 July 2020. Required:Determine the group structure and effective controlling interest for the above situations.

(i) SunBhd acquired 60% interest in RainBhd on 1 January2016. On 1 January 2018, RainBhd acquired 60% interest in CloudyBhd and on 1 January 2020, SunBhd acquired a 40% interest in CloudyBhd. (ii)FanBhd acquired a 70% interest in BallBhd on 1 February 2015. BallBhd acquired an 90% interest in Suria Bhd on 1 July 2020. Required:Determine the group structure and effective controlling interest for the above situations.

Name: (i) SunBhd acquired 60% interest in RainBhdon 1 January2016. On 1 Jan
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Description: (i) SunBhd acquired 60% interest in RainBhdon 1 January2016. On 1 January 2018,RainBhd acquired 60% interest in CloudyBhdand on 1 January 2020, SunBhd acquired a40% interestin CloudyBhd.(ii)FanBhd acquired a 70% interest in BallBhdon 1 February 2015

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

(i) SunBhd acquired 60% interest in RainBhd
on 1 January2016. On 1 January 2018,
RainBhd acquired 60% interest in CloudyBhd
and on 1 January 2020, SunBhd acquired a
40% interest
in CloudyBhd.
(ii)FanBhd acquired a 70% interest in BallBhd
on 1 February 2015. BallBhd acquired an 90%
interest in Suria Bhd on 1 July 2020.
Required:Determine the group structure and
effective controlling interest for the above
situations.

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