Question
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
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
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