Determine which of following entities SHALL and SHALL NOT prepare consolidated financial statements in accordance with PFRS 10. Explain your answer.
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Determine which of following entities SHALL and SHALL NOT prepare consolidated financial statements in accordance with PFRS 10. Explain your answer.
I. Entity LOL Ltd. that has an immaterial participation of 90% in equity interest of YIE Ltd.
II. Entity V, an investment entity, acquired an investment in a subsidiary
(entity Y). Entity Y provides services that is related to Entity V’s investment
activities.
III. Entity C Ltd. that has an interest of 20% in equity shares of ACV Ltd.
IV. Entity B ABC Group presents consolidated financial statements
which includes Entity B. Entity B is itself a parent because it has controlling interests in 8 other entities. Entity B does not have equity traded in a regulated market but is waiting for the approval of listing its debt in the Philippine Stock Exchange.
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- Determine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary: Investment in Sidney Corporation Ordinary shares Retained earnings Minority interest Goodwill and minority interest assuming that Sydney’s shares are traded in the stock marketat P 20/share.Determine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary:1) Current Assets2) Land3) Building and Equipment4) Goodwill5) Investment in Sidney Corporation6) Ordinary shares7) Retained earnings8) Minority interest9) Goodwill and minority interest assuming that Sydney’s shares are traded in the stock marketat P 20/share.White Bright Limited has three subsidiary Companies as on 31st March, 2018. Based upon the information given in the following, ascertain how the Cost of Investment will be treated in the Consolidated Balance Sheet. Particulars Amount in Millions Hazy Limited Clear Limited Sun Limited Investment made 205.00 117.00 145.00 Percent of Shares Owned 60% 65% 75% Assets at the time of Investment 625.40 314.84 443.75 Liabilities at the time of Investment 260.44 134.84 329.55 don't give hand written answers plz
- Which one of the following statements is correct with regards to a 70%-owned subsidiary? 100% of the parent’s retained earnings will be added to 100% of the subsidiary’s retained earnings at consolidation, in the statement of changes in equity. 100% of the parent’s assets will be added to 70% of the subsidiary’s assets at consolidation, in the statement of financial position. 100% of the parent’s retained earnings will be added to 70% of the subsidiary’s retained earnings at consolidation, in the statement of changes in equity. The retained earnings of the subsidiary will be allocated to the non-controlling interests in total.4. Assume that the entity is a medium-size and the company policy is to account this type of investment at fair market value, how much investment income should be reported by Jessa Company for 2021? Chevy Company owns 50% of another entity’s preference share capital and 40% of its ordinary share capital. The investee’s share capital outstanding at December 31, 2021 include P5,000,000 of 10% cumulative preference share capital and P10,000,000 of ordinary share capital. The investee reported net income of P6,000,000 for 2021. No dividend was declared for both preference and ordinary share in 2021During a fiscal year, the balance of a parent company's Investment in Subsidiary ledger account for a wholly owned subsidiary, for which the parent company uses the equity method of accounting, increases the amount of the sibsidiary's A. Adjusted net income. B. Dividends. C. Adjusted net income plus dividends. D. Undistributed earnings.
- In which of the following situations should the provision of PFRS 3 be applied? a. ABC Insurance acquiring four wholly-owned subsidiaries. b. ABC Ltd. has an interest of 20% in equity shares of Entity D. c. ABC and DEF Bank has a holding of 50% each in the equity of GHI Pharmaceuticals, Ltd. d. ABC Inc. has 50% equity interest in DEF Ltd.Analyze the truth of this statement: For an investment greater than 50%, the financial statements of the investee (subsidiary) are consolidated (combined) with that of the investor (parent company). Group of answer choices This statement is true. This statement is false. There is not enough information to determine the truth of this statement. There is no such thing as consolidated financial statements.How should preferred stock of a subsidiary be shown in a consolidated balance sheet in each case? a. If it is held 100 percent by the parent. b. If it is held 50 percent by the parent and 50 percent by outside interests c. If it is held 100 percent by outside interests.
- The shareholders of ABC Corporation would like to know the valuation of their ownership in the entity. Relative valuation based on its two closest competitors will be made. The price-book value ratio will be used. X Inc. Y Co. Market value of ordinary shares 5,980,000 7,020,000 Book Value of ordinary shares 5,200,000 6,000,000 ABC has a book value of ordinary shares at P5,800,000. This includes aninvestment property that provides additional income. It has a book value ofP420,000 but a market value of P650,000. Also, a material error in theaccounts payable was identified and it resulted to a P300,000understatement. After considering these, the remaining and corrected bookvalue can be valued using relative valuation. What is the total relative valueof ABC ordinary shares?In which of the following situations should the provision of PFRS 3 be applied? ABC Insurance acquiring four wholly-owned subsidiaries. ABC Inc. has 50% equity interest in DEF Ltd. ABC Ltd. has an interest of 20% in equity shares of Entity D. ABC and DEF Bank has a holding of 50% each in the equity of GHI Pharmaceuticals, Ltd.Investor company owns 35% of the shares in Investee company and has significant influence over the investee. How should this investment be recorded? Consolidation Amortized Cost method FV-NI Equity method