When Calculating the Direct Non-Controlling Interest Share of Equity, Consolidation

question 9

Multiple Choice

When calculating the direct non-controlling interest share of equity, consolidation adjustments are needed to:

• A) remove unrealised profits or losses from intragroup transactions.
• B) recognise profits made on intragroup services.
• C) eliminate intragroup advances.
• D) partially eliminate profits on intragroup services.

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Definitions:

Purchasing Power

The ability of an individual, firm, or group to purchase goods and services with a given unit of currency.

Price Level

The average cost across all sectors of goods and services produced in the economy.

Percent

A mathematical term describing a fraction or ratio as parts per hundred, used to indicate proportions and changes in quantities.

Deflation

A decline in the general price level of goods and services, often indicating a reduction in the supply of money and credit in the economy.