Principles of Consolidated Financial Statements Flashcards
1
Q
What percentage of ownership must a company have to gain ‘control’ of the second company?
A
50%
2
Q
What percentage of ownership must a company have to have significant influence of a second company?
A
20% - 50%
3
Q
How is a gain on a group disposal shown in the parent company’s accounts?
A
Sale proceeds
- Carrying amount on investment
4
Q
Where is a gain on a group disposal shown in the parent company’s accounts?
A
As an exceptional item - after profit from operations
