In early 2019, PT X acquired share ownership of 2 entities, namely PT Y and PT Z
Question:
In early 2019, PT X acquired share ownership of 2 entities, namely PT Y and PT Z with\r\nthe following information:\r\n
• 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.\r\n
• 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.\r\n
Towards the end of 2020, PT X sold part of its ownership to the two companies, with the following information:\r\n
• 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.\r\n
• 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.\r\n
Describe the accounting treatment for PT X for its ownership of PT Y and PT Z when:\r\n
1. Acquisition of additional shares in early 2019.\r\n
2. Sale of partial ownership towards the end of 2020.\r\n
Elementary Linear Algebra with Applications
ISBN: 978-0471669593
9th edition
Authors: Howard Anton, Chris Rorres