Module 25 - Intro To Consolidation

Question 1

Investor has control over investee

Answer 1

Subsidiary > 50%

Question 2

Investor has joint control over investee

Answer 2

50% (joint venture)

Question 3

Investor has significant influence over investee

Answer 3

Associate - 20-49%

Question 4

Investor has no control or significant influence

Answer 4

Financial asset <20%

Question 5

Objective of consolidated financial statements =

Answer 5

To present the group as if it were a single economic entity

Question 6

NCI in financial statements

Answer 6

Recognise share of subsidiary’s net assets and profit/ total comprehensive income