Critically discuss [you are expected to understand whether a subsidiary is the alter ego of the parent
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Critically discuss [you are expected to understand whether a subsidiary is the alter ego of the parent company, or whether to treat a group of ompanies as one single economic entity.
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- The difference between subsidiaries and associates can be said to revolve aroundpower and control. Critically evaluate this statement, giving examples of when a parent company would consider investing in either a subsidiary or an associate.Which of the following are not related parties? * A company and its Chief Executive Officer Two or more subsidiaries with the same parent Two co-venturers of a common joint venture business. A parent and its subsidiary________ are a portion of the ownership of a company or cooperation.
- A subsidiary is an entity that: Select one: a. Has the power to control a parent entity. b. Has significant influence over a parent entity. c. Exercises control over a parent entity. d. Is controlled by another entityConsolidated financial statements are required in which ofthe following situations?a. Only when a company can exert significant influenceover another company.b. Only when a company has a passive investment inanother company.c. Only when a parent company can exercise control overits subsidiary.d. None of the above.Consolidation financial statements are prepared when a parent-subsidiary relationship exists in recognition of the accounting principle concept of: a. Reliability b. Entity c. Materiality d. Going Concern
- what are intra-entity transfers? How do you treat intra-entity transfers while consolidating the financial statements of a parent company and its subsidiary?. Discuss with suitable examples.Intra-entity transfers between the component companies of a business combination are quite common. Why do these intra-entity transactions occur so frequently?Why is it important to understand the economic systemunder which a company operates before entering into abusiness relationship?
- Need a long and detailed self explanatory solution for the following question What are the relative advantages and disadvantages of settings up a wholly owned subsidiary instead of a joint venture?A "group" for consolidation purposes is Group of answer choices An entity, including an unincorporated entity such as partnership, that is controlled by another entity. An entity that obtains control over entities or businesses. An entity that has one or more subsidiaries. A parent and all of the subsidiaries.The economic entity assumption requires that the activities Select one: a. of a sole proprietorship cannot be distinguished from the personal economic events of its owners. b.of an entity be kept separate from the activities of its owner. c. of different entities can be combined if all the entities are corporations. d.must be reported to the Securities and Exchange Commission.