Acca financial Accounting (FA) Study Text ac ca (FA)

What figure should appear in the consolidated statement of financial 

position of Purves and its subsidiary 

Noakes

, for non-controlling 

interest? 

$________ 

110  At 1 January 20X3 Y acquired 80% of the share capital of Z for $750,000. 

At that date the share capital of Z consisted of 600,000 ordinary shares of 

$1 each and its reserves were $50,000. 

The fair value of non-controlling interest was valued at $150,000. 

In the consolidated statement of financial position of Y and its 

subsidiary Z at 31 December 20X6, what amount should appear for 

goodwill? 

$________ 

111 

Which of the following statements regarding the method of 

consolidation is true?

 

1 

Subsidiaries are equity accounted 

2 

Associates are consolidated in full 

A Neither 

statement 

B Statement 

1 

only 

C Both 

statements 

D Statement 

2 

only 

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