In a Situation Where a Parent Acquires Shares in a Subsidiary

question 25

Multiple Choice

In a situation where a parent acquires shares in a subsidiary, and the subsidiary later acquires a controlling interest in another entity, the ownership structure is:

• A) ordered.
• B) random.
• C) sequential.
• D) non-sequential.

---

Definitions:

Financial Statement Presentation

The method by which a company's financial data is arranged and reported to external parties, typically including balance sheets, income statements, and cash flow statements.

Disclosure

The act of making information known, especially information that is of interest to shareholders and potential investors regarding a company's performance and operations.

Segment Information

Details about the different operational or geographical segments of a company, required in financial reports to give insight into performance and risks.

AASB 1039 Concise Financial Reports

Australian accounting standard that provides guidelines on preparing abbreviated financial statements that present a concise overview of a company's financial performance and position.