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ABacquired 90% of the equity ofYZon31 December 20X2. On the same date YZ acquired 60% of the equity shares ofVW for $750,000. AB has no other subsidiaries.
The following information regarding YZ and VW was available:
Whatamount will AB include in its consolidated statement of financial position in respect ofnon controlling interestat 31 May 20X6?
Suggested Answer: D
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34 comments · newest first
CE
Celestina
11 months ago
I thought it was supposed to be $840,600, but now I'm confused!
JE
Jesusita
11 months ago
Wait, how do we know the valuation of VW affects this?
DA
Dahlia
11 months ago
Not so sure about that, I lean towards B, $741,400.
LA
Lamar
12 months ago
I think the answer is A, $816,400. Seems right!
AS
Ashlyn
12 months ago
AB owns 90% of YZ, so NCI is based on the 40% of YZ's equity.
FL
Florencia
1 year ago
I feel like option B might be the right answer, but I need to double-check how the calculations for the non-controlling interest were done in our practice exercises.
PE
Peggie
1 year ago
If I recall correctly, the non-controlling interest should be based on YZ's share of VW’s net assets, but I’m not entirely sure how to adjust for the acquisition date.
RO
Royal
1 year ago
I think we need to consider the fair value of the non-controlling interest at the acquisition date, but I’m a bit confused about how to apply that to the figures given.
TE
Terina
1 year ago
I remember we practiced a similar question about non-controlling interests, but I’m not sure how to calculate it with the percentages involved here.
CR
Cristy
1 year ago
This seems straightforward enough. I'll start by calculating the non-controlling interest in YZ, then do the same for VW and add them together. As long as I don't make any silly mistakes, I should be able to nail this.
RE
Ressie
1 year ago
Hmm, I'm a bit confused by the information provided. I'll need to carefully review the details about the acquisitions and the financial statements to figure out the right approach.
SA
Sabine
1 year ago
This question looks tricky, but I think I can work through it step-by-step. I'll need to calculate the non-controlling interest in YZ and VW separately, then combine them.
SE
Selma
1 year ago
Okay, I've got this. I just need to apply the relevant consolidation principles and do the math. I'm confident I can get the right answer if I take my time.
DE
Deja
1 year ago
Looks like someone's been practicing their dad jokes. Keep the puns coming, it'll make this exam a little more bearable!
TA
Tanesha
1 year ago
C) $840,600
TR
Trinidad
1 year ago
B) $741,400
RU
Rueben
1 year ago
A) $816,400
DI
Dion
1 year ago
Alright, time to put on my accountant hat and crunch some numbers. This question is like a puzzle, and I'm the master puzzle-solver!
LI
Lilli
1 year ago
User1: Let's go with that then, A) $816,400.
OL
Ollie
1 year ago
User2: I agree, it seems like the correct amount to include in the consolidated statement.
WE
Wenona
1 year ago
User1: I think the answer is A) $816,400.
SH
Sherill
1 year ago
This is a classic case of non-controlling interest calculation. I'm pretty confident that D is the correct answer, but I'll triple-check just to be sure.
DA
Darci
1 year ago
I agree. Let's make sure we have the right amount for non-controlling interest in AB's consolidated statement.
DI
Dianne
1 year ago
Yeah, it's just a matter of applying the formula correctly. Let's double-check our calculations.
TY
Tyisha
1 year ago
I think D is the correct answer too. The calculation seems straightforward.
JA
Jacinta
2 years ago
Hmm, I'm feeling a bit unsure here. Might need to double-check my workings. Consolidation can be a real brain-teaser sometimes.
IL
Iluminada
2 years ago
Okay, let's see... A is too high, B is too low, C is too high again, so I'm going with D. Gotta love these tricky consolidation questions!
WI
Willetta
1 year ago
Great, looks like we're all on the same page with choosing D as the answer. Let's hope we got it right!
NA
Nathan
1 year ago
I agree, D seems to be the best option based on the information provided. Consolidation questions can be tricky, but it's all about careful analysis.
GA
Gayla
1 year ago
Yeah, it's important to pay attention to the details in these consolidation questions. D seems like the most reasonable choice.
PO
Polly
1 year ago
I think D is the correct answer too. These questions always make you double check your calculations.
KE
Keneth
2 years ago
I'm not sure, but I think the answer might be C) $840,600. Can someone explain the rationale behind the calculation?
NO
Noelia
2 years ago
I agree with Lai, because non-controlling interest is calculated as 40% of the subsidiary's equity, which is $2,041,000 x 40% = $816,400.
LA
Lai
2 years ago
I think the answer is A) $816,400.