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 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 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. What was the goodwill arising on acquisition?

A .GHS139,370 B. GHS169,000 C. GHS119,370 D. GHS130,370