60.1K

Verified Solution

Link Copied!

13. An impairment of goodwill in a subsidiary company will be accounted for in which of the following ways? A. It will always be deducted in full from the parent company retained earnings B. It will be apportioned between the parent company and the non-controlling interest (NCl) when the NCl is valued at fair value C. It will always be apportioned between the parent company and the NCl D. It will be apportioned between the parent company and the NCl where the NCl is valued using the proportionate method 14. Which of the following is the main difference between the comprehensive income statement (profit and loss account) and the statement of cash flow? A. The comprehensive income statement is subject to annual audit but the cash flow isn't. B. The comprehensive income statement applies the accruals (matching) concept, the cash flow doesn't. C. Public limited companies prepare a cash flow voluntarily, but they are required to produce a comprehensive income statement (profit and loss account) by statute. D. The statement of cash flow reflects the effect of depreciation, but the comprehensive income statement doesn't. 15. The Alola group has recently purchased a 20% stake in Heritage Co. The other 80% is owned by another listed company, whose directors make up Heritage's board. What is the most likely treatment for Heritage in the Alola group financial statements? A. Treat the investment as an associate B. Treat the investment as a subsidiary C. Disclose the shareholding only, with no entries in the financial statements D. Treat the investment as an equity investment per IFRS 9

Answer & Explanation Solved by verified expert

See Answer