Question 15

question 15

Question text

When presenting a consolidated statement of financial position the non-controlling interest is:

Select one:

a. presented as a separate component of total assets and total liabilities.

b. presented separately within the non-current liability section.

c. presented separately within the equity section.

d. shown as a separate portion of net assets.

Question 16

Question text

During the consolidation process, it may be necessary to make which of the following adjustments to the individual statements?

Select one:

a. pre-acquisition entries only.

b. business combination valuation entries and pre-acquisition entries in the consolidation worksheet.

c. business combination valuation entries only.

d. business combination valuation entries and pre-acquisition entries in the individual journals of the parent and the subsidiaries.

Question 17

Question text

On 1 July Walter Ltd acquired 100% of the share capital of Kristoff Ltd. At that date, the carrying amount of Kristoff Ltd's machinery was $600 000. The fair value of the machinery on acquisition date was $660 000. The company tax rate was 30%. What is the amount of the business combination valuation reserve that will be recognised on consolidation?

Select one:

a. $42 000

b. $60 000

c. $66 000

d. $18 000

Question 18

Question text

A parent entity group sold a depreciable non-current asset to a subsidiary entity for $5 300. The asset originally cost $7 000 when acquired from an external party and at the date of the intragroup sale the accumulated depreciation was $2 200. The amount of the unrealised gain on the intragroup sale to be eliminated is:

Select one:

a. $500.

b. $2 200.

c. $4 800.

d. $5 300.

Question 19

Question text

The tax effect of eliminating the unrealised profit from an intragroup sale of inventories and adjusting the value of the inventories on hand is recognised as:

Select one:

a. an increase in income tax expense.

b. an increase in deferred tax liability.

c. a decrease in deferred tax liability.

d. an increase in deferred tax asset.

Question 20

Question text

On a consolidation worksheet, the non-controlling interest columns are used to:

Select one:

a. adjust the amounts that have been recorded for intragroup sales.

b. record the amounts of the non-controlling investment in the parent.

c. adjust the amounts that have been recorded for intragroup services.

d. compile the amounts of non-controlling interest and parent share of particular line items.