Exam 19: Consolidation: Other Issues

In order to consolidate a 70% interest in a subsidiary,the Fitzpatrick group prepared the following pre-acquisition entry: DR Retained earnings $2 000 DR Share capital $15 000 DR General reserve $3 000 DR Goodwill $1 000 CR Investment in subsidiary $21 000 The interest in equity attributable to the direct non-controlling interest (to the nearest dollar)is:

Which of the following cannot result in a loss of control by a parent over a subsidiary?

Gamma Limited acquired shares in Delta Limited.At the time of this acquisition Delta Limited already held shares in Epsilon Limited.This form of acquisition of an indirect ownership interest,by Gamma Limited in Epsilon Limited,is known as:

Explain the term reciprocal interest.

The direct non-controlling interest (DNCI)and indirect non-controlling interest (INCI)are: