Leasing Subsidiaries Are Formed to Achieve Centralized Asset Management Through

question 43

Multiple Choice

Leasing subsidiaries are formed to achieve centralized asset management through leasing to affiliated firms, and when they are consolidated with the parent, they are consolidated​

• A)​only if the parent controls at least 20% of the leasing subsidiary.
• B)​only if the parent controls at least 50% of the leasing subsidiary.
• C)​only if the parent controls at least 90% of the leasing subsidiary.
• D)​regardless of the ownership percentage of the parent.

---

Definitions:

High-Growth Companies

Entities that experience significantly higher rates of growth compared to the average growth rate of their industry.

IFRS

The International Financial Reporting Standards are globally accepted rules intended to bring consistency to accounting language, practices, and statements across all industries.

Preference Shares

Shares that give holders a priority over common stockholders in terms of receiving dividends and assets in the event of a liquidation, often without voting rights.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected on the income statement as a charge against earnings.