Question 1 (a) Suggest TWO (2) reasons why a parent company may not wish to consolidate a subsidiary company and describe the circumstances in which non consolidation of subsidiaries is permitted by Malaysian Accounting Standards 4 marks (b) Define the meaning of a subsidiary and explain how control is achieved 4 marks (c) Define the meaning of an associate and significant influence 4 marks (d) A company can be classified as either a private or a public company Give TWO (2) characteristics of a private company under the Companies Act 2016 4 marks (e) Elaborate THREE (3) main steps involved in issuance of shares 4 marks

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Question: Question 1 (a) Suggest TWO (2) reasons why a parent company may not wish to consolidate a subsidiary company and describe the circumstances in which

Question 1

(a) Suggest TWO (2) reasons why a parent company may not wish to consolidate a subsidiary company and describe the circumstances in which non-consolidation of subsidiaries is permitted by Malaysian Accounting Standards.

[4 marks]

(b) Define the meaning of a subsidiary and explain how control is achieved. [4 marks]

(d) A company can be classified as either a private or a public company. Give TWO (2) characteristics of a private company under the Companies Act 2016. [4 marks]

(e) Elaborate THREE (3) main steps involved in issuance of shares. [4 marks]

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