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question 3
Should the EC activities be spun off as a separate company?
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- Question: A company is a separate legal entity. briefly explain.26 S1: Consolidated financial statements are typically prepared when one company has controlling financial interest unless such control is likely to be temporary.S2: Acquisition related costs in a business combination includes professional or consultancy fees, costs of registering and issuing debt and equity securities and general administrative costs. Group of answer choices False; False False; True True; False True; TrueAnswer with true or false. No need explanation. 1. Indirect cost incurred by the entity in business combination is recognized as expense. 2. PFRS 10 defines control as the power to govern the financial and operating policies as to obtain benefits from its activities. 3. An investor has no power over the investee even if the investor holds the majority of the voting rights if those rights are not substantive. 4. A subsidiary should be excluded from the consolidated statements if the subsidiary operates under governmentally impose uncertainty.
- 1) Describe the Oman Companies Formation act and procedure?(TCO C) Why is push-down accounting a popular reporting technique internally for a parent corporation?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.
- QUESTION 10 Which of the following is an organizational disadvantage of a corporation? A. Taxable entity B. Separate legal entity C. Relative ease of ownership transfer D. Limited liability of ownersQ2 Which of the following methods of accounting are permitted under IAS 31? Select one: a. Full consolidation and interest method b. Proportionate consolidation and equity method c. Proportionate consolidation and full consolidation d. Full consolidation and equity methodQuestion 1Discuss how the consolidated financial statements reflect:(a) The “single economic entity” concept.(b) The distinction between “control” and “ownership”
- 8.what amount will be reported for Shareholders’ Equity in the combined company’s statement of financial position immediately following the business combination?28 true or false The going-concern assumption means that the business owner and the company are separate accounting entities.Differentiate between S and C corporations.