IFS Consolidation Flashcards
Under IFRS, a parent may exclude a subsidiary from consolidation if all of the following conditions exist, except:?
It is wholly or partially owned and its other owners do not object to nonconsolidation.
It reports only one class of stock in its balance sheet.
Its parent prepares consolidated financial statements that comply with IFRS.
It does not have any debt or equity instruments publicly traded.
It reports only one class of stock in its balance sheet.
This answer is correct because it is not one of the three conditions required to exclude a subsidiary from consolidation. The three required conditions are: (1) it is wholly or partially owned and its other owners do not object to nonconsolidation; (2) it does not have any debt or equity instruments publicly traded; and (3) its parent prepares consolidated financial statements that comply with IFRS.
Which statement is true with respect to noncontrolling interest?
US GAAP records noncontrolling interest at the proportionate share of the value of identifiable net assets of the acquiree.
IFRS only records noncontrolling interest at the proportionate share of the value of identifiable net assets of the acquiree.
Both US GAAP and IFRS record noncontrolling interest at the proportionate share of the value of identifiable net assets of the acquiree.
IFRS permits recording noncontrolling interests at either fair value or the proportionate share of the value of identifiable net assets of the acquiree.
IFRS permits recording noncontrolling interests at either fair value or the proportionate share of the value of identifiable net assets of the acquiree.
This answer is correct because IFRS permits recording noncontrolling interests at either fair value or the proportionate share of the value of identifiable net assets of the acquiree.
