1 Groups and consolidation: an overview

 
 
 
 
 
 
 
 
 
 
QUICK QUIZ
CHAPTER ROUNDUP 
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PART G: PREPARING SIMPLE CONSOLIDATED FINANCIAL STATEMENTS 
 
416
 
1
A 
subsidiary
is an entity controlled by another entity. 
2
True 
3
To prepare consolidated financial statements 
4
That part of the equity or preference capital not owned by the parent 
5
An entity in which an investor has a significant influence, but which is not a subsidiary or a joint venture 
of the investor 
6
D 
A trade investment is simply shown as an investment in the statement of financial position. The 
investor will only produce consolidated accounts if they also have subsidiaries.
Now try ... 
Attempt the questions below from the 
Practice Question Bank 
Qs 87 – 89 
ANSWERS TO QUICK QUIZ 
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417 
C H A P T E R 
TOPIC LIST 
SYLLABUS 
REFERENCE 
1 Summary of consolidation procedures 
G1(c)–(d)
2 Goodwill arising on consolidation
G1(c)–(d)
3 Non-controlling 
interests 
G1(c)–(d)
4 Intra-group 
trading 
G1(c)–(d)
5 Acquisition of a subsidiary part way through the year 
G1(c)–(d)
6 Summary: consolidated statement of financial position 
G1(c)–(d)
The consolidated
statement of financial 
position
This chapter introduces the basic procedures required to produce a 
consolidated statement of financial position.
There are plenty of questions and examples in this chapter – work 
through 
all
of them carefully. 
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