Question
On 1 July 2020, Happy Pty Ltd was owned by the following shareholders: Patrick 40% Trudy 25% Bob 20% Li 15% On 18 August 2021,
On 1 July 2020, Happy Pty Ltd was owned by the following shareholders:
- Patrick 40%
- Trudy 25%
- Bob 20%
- Li 15%
On 18 August 2021, Patrick sold his shares in Happy Pty Ltd to a third party who is not related to the current shareholders.
Does Happy Pty Ltd satisfy the continuity of ownership test when the losses are utilised 30 June 2022? Does the entity need to consider the same business test? Please explain your answer.
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College Accounting A Practical Approach 1-15
Authors: Jeffrey Slater
4th Edition
013142050X, 978-0131420502
