Which of the following items is not a financial fixed asset? (Difficulty: Moderate)
Shares in subsidiaries
Marketable securities
Loans to subsidiaries
Shares in associated companies
Which of the following statements is not correct? (Difficulty: Moderate)
The economic entity resulting from the combination of two or more entities linked by intercorporate investments of sufficient importance to warrant effective control of one over the other is called a group.
If an investor or a shareholder wants or needs to shape her or his opinion about the financial position and the performance potential of a group, it is essential to develop group accounts.
In most countries, a group is generally a legal entity.
Group accounts are also called consolidated accounts or consolidated financial statements.
Given the following data: o P owns directly 43% of C2; o P owns directly 30% of C1; o C1 owns directly 40% of C2; What is the percentage of control of the parent P over C2? (Difficulty: Difficult)
30%
40%
43%
82%
What is the consolidation method used in case of significant influence? (Difficulty: Moderate)
Full consolidation
Proportionate consolidation
Global integration
Equity method
Given the following data: o P owns directly 100% of C; o Share capital of P amounts to 200; o Share capital of C amounts to 100; What is the share capital in the consolidated balance sheet of the group comprised of P and C? (Difficulty: Moderate)
100
200
300
400
If the parent company owns 90% of the shares of its subsidiary, the parent company integrates ___________ of the assets and liabilities of the subsidiary in its consolidated accounts. (Difficulty: Moderate)
80%
90%
99%
100%
Under the entity concept, how are the non-controlling [minority] interests reported in the financial statements? (Difficulty: Moderate)
No non-controlling interests are reported.
Non-controlling interests are part of liabilities of consolidated entity.
Non-controlling interests are included as a part of shareholders’ equity.
Non-controlling interests are reported between shareholders’ equity and liabilities.
Given the following data: o Purchase price = 420 o Interest in book value of shareholders’ equity of subsidiary at the time of acquisition = 320 o Interest in fair value of identifiable assets and liabilities of subsidiary = 390 What is the amount of the goodwill? (Difficulty: Difficult)
0
30
70
100
What is generally the first step of the consolidation process? (Difficulty: Moderate)
Consolidation entries and operations.
Pre-consolidation.
Preparation of the consolidated financial statements.
Identify the companies to be consolidated.
Given the following data: o A merges with B o Number of shares included in the capital of A = 4000 o Par value = 100 o Net assets of A = 1200000 o Number of shares included in the capital of B = 2000 o Par value = 100 o Net assets of B = 300000 What is the amount of the merger premium? (Difficulty: Difficult)