The Following Is an Extract from the Non-Controlling Interest Memorandum,used

question 14

Multiple Choice

The following is an extract from the non-controlling interest memorandum,used to calculate non-controlling interests.Both subsidiaries became members of the economic entity at the same time at the start of this current period. $$\begin{array} { | l | r | r | r | } \hline & \text { Barbie Ltd } & \text { Ken Ltd } & \text { Total NCl } \\\hline \text { Non-controlling interest in profit after tax } & & & \\\text { Profit as shown in respective entity's reports } & 12000 & 16000 & \\\text { less: Dividend received from entity within group } & ( 2500 ) & & \\\text { Profit contributed to the economic entity } & 9500 & 16000 & \\\hline \text { Non-controlling interest } & 3800 & 9920 & 13720 \\\hline \begin{array} { l } \text { Non-controlling interest in opening retained earings } \\\text { Opening retained earnings }\end{array} & 15000 & 24000 & \\\hline \text { Non-controlling interest } & 6000 & 9600 & 15600 \\\hline\end{array}$$ The line item 'Dividend received from entity within the group' is an adjustment made:

• A)to prevent double-counting as the indirect non-controlling interest of Barbie Ltd is in fact the same interest as the direct non-controlling interest in Ken Ltd and would have already received a share of the dividend as part of the share of profit in Ken Ltd.
• B)to recognise, and eliminate, the dividend paid by Barbie Ltd directly to the parent entity.
• C)to prevent double-counting as the indirect non-controlling interest of Ken Ltd is in fact the same interest as the direct non-controlling interest in Barbie Ltd and would have already received a share of the dividend as part of the share of profit in Ken Ltd
• D)to recognise, and eliminate, the dividend paid by Ken Ltd directly to the parent entity.

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Definitions:

Synapse

The junction between two neurons, facilitating the transmission of a signal from one neuron to the other.

Epineurium

The outermost layer of connective tissue surrounding a peripheral nerve, providing protection and support.

Connective Tissue

Tissue that supports, binds together, and protects organs. It includes various types, such as bone, cartilage, fat, blood, and lymphatic tissue.

Astrocytes

Star-shaped glial cells in the brain and spinal cord, involved in physical support and maintenance of the blood-brain barrier.