Chapter 10

Question 1

What is a transaction within equity

Answer 1

An increase or decrease in shareholding without actually loosing control of a subsidiary.

Question 2

What is meant by step acquisition

Answer 2

When a company acquired additional shares of an entity which it already holds a number of shares in and gains control

Question 3

Where is the re measurement of previous share holding gain or loss, recording in the case of step acqusition

Answer 3

It is recorded in the profit and loss,, unlike ias 16 PPE, where re measurement of PPE is recorded in the other comprehensivne income due it being unrelaised gains or losses.
Even here in (step acquisition)the gains or losses are unrealized but recorded in the profit and loss account (the main logic behind this accounting is that the IFRS standard is saying that we have to imagine we sold the intitial equity holding we had in the entity then re acquire it so then it will be recorded at FV. even though that is not the case. That is what is being imagined by the standard.)

Question 4

the parent always accconts 100% of the subsidiaries net assets and goodwill , whereas the NCI only account for it share of the net assets and does NCI does not even account for good will . True or false

Answer 4

True