Exam 30: Consolidation: Other Issues

Waratah Ltd acquired a 60% ownership interest in Bottle Brush Ltd on 30 June 20X5. On the same day, Bottle Brush Ltd acquired a 70% ownership interest in Honeydew Ltd. The following interentity transactions have taken place between the entities in the group during the years ended 30 June 20X6 and 30 June 20X7. On 1 July 20X5 Bottle Brush sold an item of plant to Honeydew for a profit of $20 000. The remaining useful life of the plant at the date of transfer was 4 years. -On 1 September 20X5, Honeydew paid a dividend of $70 000 from profits earned since 30 June 20X5. -Waratah lent $50 000 to Bottle Brush on 1 January 20X6. Interest charged on the loan for the year ended 30 June 20X6 was $2000 and for the year ended 30 June 20X7 was $4000. On 31 May 20X6 Waratah sold inventories to Honeydew for $15 000. Profit earned on the sale was $5000. Honeydew sold the inventories to external parties on 1 August 20X6. Details of profits earned by entities within the group for the years ended 30 June 20X6 and 30 June 20X7 are: The tax rate is 30%. The effect of the interest paid by Bottle Brush to Waratah on the NCI of Bottle Brush for the year ended 30 June 20X7 is:

In a group that has a multiple subsidiary structure, the indirect non-controlling interest is entitled to:

When calculating the direct non-controlling interest share of equity, consolidation adjustments are needed to:

Consider the following economic entity structure. The direct non-controlling interests (DNCI) and indirect non-controlling interests (INCI) are which of the following?

Consider the following economic entity structure: The direct non-controlling interest (DNCI) and indirect non-controlling interest (INCI) are which of the following?

Peter Limited has an ownership interest of 80% in a subsidiary John Limited. John Limited owns 60% of Joseph Limited. At acquisition date the retained earnings of Joseph Limited were $200 000. At consolidation date, the retained earnings of Joseph Limited were $440 000. The indirect non-controlling interest in the retained earnings of Joseph Limited is calculated as:

An ownership structure in which Orange Limited acquires shares in Pear Limited before Pear Limited acquires shares in Quince Limited is known as:

Realty Group had the following debits in the pre-acquisition entry used to consolidate a 60% direct ownership interest in a subsidiary: Retained earnings $60 000, Share capital $120 000, General Reserve $24 000, BCVR $12 000. The amount attributable to the direct non-controlling interest is: