1.When a subsidiary returns pre-control dividends to a parent, the amount of dividend is a credit to revenue. Explain the apparent political reason for this IFRS rule and how it affects consolidation reporting (3 marks).

2.How did the full goodwill method of accounting for NCI come to exist and do you think it results in useful financial information?

3.Company X buys 1.5 million shares in Company Q, a listed company with 12 million voting shares. Company X then elects two of nine directors of Company Q. What kind of accounting would be required for this investment? Explain the guidelines

4.Company A owns no shares in Company B. The only buyer of the specialised production output of Company B is Company A. Could Companies A and B constitute a corporate group? Explain the guidelines

5.Company D and Company E have no control over or shares in each other, but they have an arrangement where they share the control over a third company, F. Would Company D or Company E be required to produce a consolidated report in respect of the F investment? Why or why not?