Consolidated and Separate Financial Statements prescribes that non-controlling interests
1. AASB
10 Consolidated and Separate Financial Statements prescribes that
non-controlling interests be presented in the consolidated statement of
financial position as a liability.
Chapter – Chapter 29 #1
Difficulty: Easy
Section: 29.01 What is a non-controlling
interest?
2. Total
comprehensive income is attributed to the owners of the parent and to the
non-controlling interests even if this results in the non-controlling interests
having a deficit balance.
Chapter – Chapter 29 #2
Difficulty: Easy
Section: 29.02 Non-controlling interests to
be disclosed in the consolidated financial statements
3. AASB
101 Presentation of Financial Statements requires a separate line item on the
face of the statement of financial position showing the non-controlling
interest in equity.
Chapter – Chapter 29 #3
Difficulty: Easy
Section: 29.02 Non-controlling interests to
be disclosed in the consolidated financial statements
4. AASB
101 Presentation of Financial Statements requires an entity to disclose
separately in the statement of comprehensive income, profit or loss for the
period attributable to non-controlling interests and owners of the parent.
Chapter – Chapter 29 #4
Difficulty: Easy
Section: 29.02 Non-controlling interests to
be disclosed in the consolidated financial statements
5. One
of the steps in preparing consolidated financial statements is working out the
amounts to be attributed to non-controlling interests to determine the amount
to be eliminated in the consolidation process.
Chapter – Chapter 29 #5
Difficulty: Easy
Section: 29.03 Calculating non-controlling
interests
6. Using
full goodwill method, share of goodwill attributable to the non-controlling
interests is recognised in the statement of financial position as part of
non-controlling interest in equity.
Chapter – Chapter 29 #6
Difficulty: Easy
Section: 29.03 Calculating non-controlling
interests
7. Parties
who are not part of the ownership of the parent entity in a group and who own
capital in a company that is a controlled entity in that group are called
outside financing interests.
Chapter – Chapter 29 #7
Difficulty: Easy
Section: 29.01 What is a non-controlling
interest?
8. In
calculating the proportion of a subsidiary’s profit that is attributable to
owners who are not part of the group, all adjustments to the group’s profit
should be treated as affecting the calculation for the outside owners.
Chapter – Chapter 29 #8
Difficulty: Easy
Section: 29.03 Calculating non-controlling
interests
9. Under
the proprietary concept of consolidation, non-controlling interests are shown
as a liability.
Chapter – Chapter 29 #9
Difficulty: Easy
Section: 29.01 What is a non-controlling
interest?
10. In
preparing consolidated financial statements non-controlling interests are
allocated on a ‘line-by-line’ basis.
Chapter – Chapter 29 #10
Difficulty: Medium
Section: 29.02 Non-controlling interests to
be disclosed in the consolidated financial statements
11. Non-controlling
interests are ‘identified’ and eliminated as part of the consolidation process.
Chapter – Chapter 29 #11
Difficulty: Easy
Section: 29.02 Non-controlling interests to
be disclosed in the consolidated financial statements
12. Non-controlling
interests are shown as equity, that is, as contributors of equity capital to
the economic entity.
Chapter – Chapter 29 #12
Difficulty: Easy
Section: 29.02 Non-controlling interests to
be disclosed in the consolidated financial statements
13. Non-controlling
interests are allocated on a ‘line-by-line’ basis throughout the statement of
comprehensive income.
Chapter – Chapter 29 #13
Difficulty: Easy
Section: 29.02 Non-controlling interests to
be disclosed in the consolidated financial statements
14. Only
dividends payable to the parent entity are eliminated against dividends
receivable in the accounts of the parent entity.
Chapter – Chapter 29 #14
Difficulty: Easy
Section: 29.01 What is a non-controlling
interest?
