Consequential Depreciation Adjustments in Relation to Assets That Were the Subject

question 29

True/False

Consequential depreciation adjustments in relation to assets that were the subject of an upward business combination valuation adjustment must be taken into account when calculating the NCI share of post-acquisition movements in the subsidiary's equity.

---

Definitions:

Venture Capitalists

Investors who provide capital to startups and early-stage companies with high growth potential in exchange for equity, or partial ownership.

Financial Strength

A company’s ability to maintain its financial health, typically measured through metrics like liquidity, solvency, and profitability indicators.

Long-term Investors

Individuals or entities that purchase assets with the intention of holding them for an extended period, typically expecting to benefit from long-term growth.

Underwriting Syndicate

A group of financial institutions that work together to issue and distribute a new security to the public.