Exam 18: Consolidation: Non-Controlling Interest

What is a gain on bargain purchase,how does it arise,and what is the non-controlling interest's involvement?

If a gain on bargain purchase arises on a business combination,the non-controlling interest:

A Ltd holds a 60% interest in B Ltd.A Ltd sells inventory to B Ltd during the year for $10 000.The inventory originally cost $7 000.At the end of the year 50% of the inventory is still on hand.The tax rate is 30%.The NCI adjustment required in relation to this transaction is a debit of:

Non-controlling interest is classified,according to AASB 10 Consolidated Financial Statements,as:

A Ltd holds a 60% interest in B Ltd.B Ltd sells inventory to A Ltd during the year for $10 000.The inventory originally cost $7 000.At the end of the year 50% of the inventory is still on hand.The tax rate is 30%.The NCI adjustment required in relation to this transaction is a debit of:

When preparing a consolidated statement of changes in equity,AASB 10 Consolidated Financial Statements,requires that any non-controlling interest in equity of subsidiaries is:

When preparing consolidated financial statements,any profit or loss that arises in relation to the intragroup transfer of services is regarded as:

Explain why a non-controlling interest is entitled to a share of consolidated profit.

Petros Limited is a subsidiary of Butros Limited.When Butros acquired its 60% interest the retained earnings of Petros Limited were $20 000.At the beginning of the current period Petros Limited's retained earnings had increased to $50 000.Petros earned profit of $10 000 during the current period.The share of the non-controlling interest in the equity of Petros Limited at reporting date is:

A Ltd holds a 60% interest in B Ltd.On 1 July 20X8 B Ltd transferred a depreciable non-current asset to A Ltd at a profit of $5 000.The remaining useful life of the asset at the date of transfer was 4 years and the tax rate is 30%.The impact of the above on the NCI share of profit for the year ended 30 June 20X9 is:

Explain how the existence of a non-controlling interest affects the valuation entries at acquisition date.

Xana Limited paid $110 000 for 60% of Yama Limited.At the date of acquisition Yama Limited had share capital of $100 000 and retained earnings of $50 000 and all of Yama Limited's assets and liabilities were recorded at fair value.The fair value of identifiable net assets acquired by Xana Limited amounted to:

Ownership interests in a subsidiary entity that do not belong to the parent entity are known as:

Company A Limited owns 90% of the share capital of Company B Limited.Company B Limited paid a dividend of $20 000 during the financial period.The adjustment entries in the consolidation worksheet for the dividend include:

What is a non-controlling interest in relation to a group of entities?

Outline the non-controlling interest's perspective of intragroup transfers for services.

When preparing and presenting a consolidated statement of comprehensive income the non-controlling interest is:

During the current year a partly owned subsidiary has made a transfer from retained earnings to a general reserve.Which of the following lines would appear in the NCI journal relating to the current year transfer?

Jiminez Limited acquired 80% of the share capital and reserves of Mustang Limited for $180 000.Share capital was $100 000 and reserves amounted to $50 000.All assets and liabilities were recorded at fair value except buildings which was recorded at $10 000 below fair value.If the company tax rate was 30%,and the partial goodwill method was adopted,the NCI share of equity at the date of acquisition was:

A non-controlling interest is entitled to a share of which of the following items? I Equity of the group entity at acquisition date II Current period profit or loss of the subsidiary entity III Changes in equity of the subsidiary since acquisition date and the beginning of the financial period IV Equity of the subsidiary at acquisition date