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Clare Ltd owns 47% of Andy Ltd and governs the operating decisions of Andy Ltd; but Clare Ltd does not govern the financial decisions of
Clare Ltd owns 47% of Andy Ltd and governs the operating decisions of Andy Ltd; but Clare Ltd does not govern the financial decisions of Andy Ltd. Under AASB 3 Business Combinations Clare Ltd would: Select one: O not consolidate Andy Ltd because the percentage ownership is not greater than 50%. O not consolidate Andy Ltd, because Clare Ltd must govern all decisions of a subsidiary before a consolidation is required. consolidate Andy Ltd because, despite that less than 50% is owned, it is highly possible that Clare Ltd would cast a majority vote at the annual general meeting. O consolidate Andy Ltd because Clare Ltd governs sufficient decision-making of Andy Ltd. Which of the following statements is incorrect? Select one: O A. Under the partial goodwill method, the NCI is measured at fair value at acquisition date. OB. Under the partial goodwill method, the NCI is measured as a proportion of the net fair value of the subsidiary's identifiable assets and liabilities at acquisition date. O C. Extra columns are added to the consolidation worksheet to divide the group's equity into the NCI share and the parent's share. O D. The adjustments for intragroup transactions are the same whether the subsidiary is wholly owned or whether there is an NCI in the subsidiary. Mooloolaba Limited owns 90% of the share capital of Maroochydore Limited. Maroochydore Limited paid a dividend of $40,000 during the current period. The adjustment entries in the consolidation worksheet for the dividend include which of the following? Select one: O a. Dr Dividend payable $36 000 O b. Dr Dividend revenue $36 000 O c. Dr Dividend receivable $40 000 O d. Dr Dividend revenue $40 000
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