Consider the following situations independently: (i) Eclipse Bhd acquired 80% interest in Star Bhd on 1 March
Question:
Consider the following situations independently:
(i) Eclipse Bhd acquired 80% interest in Star Bhd on 1 March 2017. On 1 January 2018, Star Bhd acquired 70% interest in Cloudy Bhd and. Later, on 1 January 2020, Eclipse Bhd acquired a 20% interest in Cloudy Bhd.
(ii) Omicron Bhd acquired a 60% interest in Delta Bhd on 1 February 2018. Delta Bhd acquired a 90% interest in Deltamicron Bhd on 1 July 2020.
(iii) Vogue Bhd acquired 70% of ordinary shares in Cute Bhd on 1 January 2018. On 10 July 2020, Vogue acquired 95% interest in Glams Bhd by paying cash of RM10 million. In two months after, Vogue Bhd made a new investment that amounted to 68% in Virtual Sdn Bhd as part of its business expansion program.
Required:
Determine the group structure and effective controlling interest for the above situations
Financial Accounting
ISBN: 978-0077862268
2nd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann