Which of the following is the criterion for the treatment of an investment as a subsidiary ?

Ownership of 50% of the equity shares of the investee

Existence of significant influence

Right to participate in policy-making processes of the investee

A parent and its subsidiaries and associates

A parent and all its subsidiaries, associates and joint ventures

An entity that controls one or more entities

An entity that has subsidiaries and associates

An entity that has one subsidiary and some associates

An entity that has subsidiaries, associates and joint ventures

What is a subsidiary?

An entity that is controlled by another entity

An entity that is controlled by one or more entities

An entity that controls other entities

An entity that must have the right to control other entities

the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities

the power to participate in the financial and operating policy decisions of the investee to obtain benefits from its activities

Control does not necessarily mean governing the financial and operating policies of an entity to obtain benefits from its activities

What is significant influence?

the power to participate in the financial and operating policy decisions of the investee but is not control or joint control of those policies

the power to participate in the financial and operating policy decisions of the investee and control those policies

the power to participate in the financial and operating policy decisions of the investee but may or may not control those policies.

What is an associate?

an entity over which the investor has significant influence

an entity over which the investor has the right to control

an entity over which investors joint control

What is a joint venture?

contractual agreement between two or more parties to jointly carry out an economic activity, which is jointly controlled by the investors to the joint venture.

an entity over which the investor has significant influence but is not a subsidiary or an associate of the investor

an entity in which the investor has no significant influence and is a subsidiary or associate company of the investor

What is joint control?

the right to jointly govern the financial and operating policies of an economic activity on the basis of contractual agreement

an arrangement of which two or more parties share economic benefits

Non-controlling interest?

Is a proportion of the net performance and net assets of a subsidiary corresponding to the interests not owned directly or indirectly by the parent company through its subsidiaries

Includes direct and indirect interest obtained through parent company

When is NCI appeared in Consolidated FS?

When subsidiary is not wholly-owned by the group

When subsidiary is not wholly-owned by the parent

When subsidiary is wholly-owned by the group

How can NCI be presented?

In the Consolidated Income statement - under heading "NCI's profit interest" - Liabilities Section

In the Consolidated Balance Sheet - under heading "Non-controlling interest” - Liabilities section

In the Consolidated Balance Sheet- under heading "Non-controlling interest" - Owner's Equity Section

In the Consolidated Balance Sheet - under heading "NCI's profit after tax

the future economic benefits arising from other assets acquired that are not individually identified and separately recognised.

the difference between the cost of combination and the acquirer's ownership in acquisition-date fair value of identifiable net assets acquired and recognised contingent liabilities.

the future economic benefits arising from other assets acquired that are individually identified and separately recognised.

Negative goodwill? (Gain from a bargain purchase)

Arising when the cost of combination is less than the acquirer's ownership in acquisition-date fair value of identifiable net assets acquired and contingent liabilities recognised.

Arising when the cost of combination is higher than the acquirer's ownership in acquisition-date fair value of identifiable net assets acquired and contingent liabilities recognised.

How to present goodwill?

As an asset in the Consolidated Balance Sheet - under heading "Goodwill"

As an asset in the Private Balance Sheet of parent company - under heading "Goodwill"

Costs directly attributable to the business combination?

Consulting, auditing and valuation fees

Cost of issuing debt instruments in exchange for control over the acquiree

Cost of issuing equity instruments in exchange for control over the acquiree

If the parent acquires the subsidiary's shares by exchanging fixed assets

the cost of combination is determined based on the fair value of the fixed assets at DOA.

the cost of combination is determined based on the carrying amount of the fixed assets.

the cost of combination is determined based on the initial costs of the fixed assets.

If the parent acquires the subsidiary's shares by exchanging inventories,

the cost of combination is determined based on the FV of the exchanged inventories at DOA.

the cost of combination is determined based on the cost of the exchanged inventories.

If the business combination transaction does not result in a parent company-subsidiary relationship, the assets and liabilities of the acquiree are presented

on the acquirer's financial statements at fair value

on the acquirer's financial statements at book value

If the business combination transaction result in a parent company-subsidiary relationship, the assets and liabilities of the acquiree are presented

on the group's FS at fair value

on the acquirer's financial statements at fair value

on the acquirer's financial statements at book value

on the group's FS at book value

If the group is not required to prepare consolidated FS at the date of acquisition

the parent is still required to determine the fair value of the subsidiary's identifiable assets and liabilities at the date of acquisition.

the parent does not need to determine the fair value of the subsidiary's identifiable assets and liabilities at the date of acquisition.

If the group is not required to prepare consolidated FS at the date of acquisition,

the parent is still required to determine the cost of combination at the date of acquisition.

the parent does not need to determine the cost of combination at the date of acquisition.

Consolidated financial statements included:

Annual consolidated financial statements

Interim consolidated financial statements

Semi-annual consolidated financial statements

Quarterly consolidated financial statements

Annual consolidated financial statements

must be prepared in full format

could be prepared in summary format

Interim consolidated financial statements

could be prepared either in full or summary

must be prepared in full format

must be prepared in summary format

In Vietnam, a set of consolidated FS includes:

A consolidated income statement

A statement of changes in equity

KKTĐ

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Financial Education

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University

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Hard

Nhi Nguyễn

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