Question
1 IFRS 10 Consolidated financial statements provides a definition of control and identifies three separate elements of control. Which one of the following is not
1 IFRS 10 Consolidated financial statements provides a definition of control and identifies three separate elements of control. Which one of the following is not one of these elements of control? A Power over the investee B The power to participate in the financial and operating policies of the investee C Exposure to, or rights to, variable returns from its involvement with the investee D The ability to use its power over the investee to affect the amount of the investor's returns 2 Peter Plc owns 100% of the share capital of the following companies. The directors are unsure of whether the investments should be consolidated. In which of the following circumstances would the investment NOT be consolidated? A Peter Plc has decided to sell its investment in Alpha as it is loss-making; the directors believe its exclusion from consolidation would assist users in predicting the group's future profits B Beta is a bank and its activity is so different from the engineering activities of the rest of the group that it would be meaningless to consolidate it C Delta is located in a country where local accounting standards are compulsory and these are not compatible with IFRS used by the rest of the group D Gamma is located in a country where a military coup has taken place and Peter Plc has lost control of the investment for the foreseeable future 3 Cloud obtained a 60% holding in the 100,000 GHS1 shares of Mist on 1 January 2018, when the retained earnings of Mist were GHS850,000. Consideration comprised GHS250,000 cash, GHS400,000 payable on 1 January 2019 and one share in Cloud for each two shares acquired. Cloud has a cost of capital of 8% and the market value of its shares on 1 January 2018 was GHS2.30. Cloud measures non-controlling interest at fair value. The fair value of the non-controlling interest at 1 January 2018 was estimated to be GHS400,000. 92 What was the goodwill arising on acquisition? GHS139,370 GHS169,000 GHS119,370 GHS130,370
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