Buttenhaus, a German company that reports using IFRS, has a financial relationship with Zeta, but does not own any of its voting stock. When should Buttenhaus consolidate Zeta's accounts with its own in its annual report?

	A.	Never
	B.	If Buttenhaus controls Zeta's operations, Buttenhaus should consolidate it.
	C.	If Zeta is a variable interest entity and Buttenhaus is its primary beneficiary, Buttenhaus should consolidate it.
	D.	If Zeta is a variable interest entity and a special purpose entity, Buttenhaus should consolidate it.

A parent has a 60% interest in its subsidiary. Ending inventory profits on downstream merchandise sales:

	A.	Increase equity in net income and the noncontrolling interest in net income
	B.	Reduce equity in net income and the noncontrolling interest in net income
	C.	Only reduce equity in net income
	D.	Only increase equity in net income

According to IFRS, the financial statements of two legal entities should be presented on a consolidated basis if:

	A.	One company is a major supplier of the other company
	B.	One company has decision making control over the other company
	C.	One company owns a majority of the voting stock of the other company
	D.	One company is a spinoff of the other company