=+Golf Limited is a trading company, which has recently sought to diversify its interests by purchasing shares
Question:
=+Golf Limited is a trading company, which has recently sought to diversify its interests by purchasing shares in other companies. It has been its policy to insist on appointing a director to the board of any company, so as to take an active part in the management, where its investment comprises more than 20% of the equity share capital.
The following investments have been made:
1. On 1 January 1991, 15% of the ordinary share capital of Club Limited;
. On 1 July 1991, 30% of the ordinary share capital of Ball Limited; and 3. On 1 November 1991, 75% of the ordinary share capital of Tee Limited, and also 50,000 of the 100,000 9% preference shares of €1 each in that company. For the purposes of measuring non-controlling interests at the date of acquisition, the proportionate share method equates to the fair value method.
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Step by Step Answer:
International Financial Accounting And Reporting
ISBN: 9780903854726
2nd Edition
Authors: Ciaran Connolly