Chapter 11 - Mixed Groups Flashcards
1
Q
Mixed Group (D-Shaped Group)
A
Where a parent has both a direct and indirect investment in a particular sub-subsidiary
2
Q
Consolidation
A
Once control is established the sub-subsidiary is consolidated
3
Q
Mixed Group determinant
A
Parent owns more than 50% of subsidiary
The combination of parent’s and subsidiary’s direct ownership in the sub-subsidiary must be greater than 50%
4
Q
Effective control
A
Total of parent’s direct and indirect ownership of the subsidiary
5
Q
Effective Ownership
A
Direct ownership
+
Indirect ownership
6
Q
Non-controlling interest of sub-subsidiary in a mixed group
A
100% less effective ownership
7
Q
Point of Control
A
Date of acquisition
