Where the Parent Entity Holds Less Than 100 Per Cent

question 16

Multiple Choice

Where the parent entity holds less than 100 per cent interest in a subsidiary,AASB 10 requires the remaining shareholders' interests in what items to be disclosed?

• A) the subsidiary's share capital and reserves
• B) the subsidiary's profit or loss
• C) the subsidiary's current and non-current assets
• D) the subsidiary's share capital and reserves and the subsidiary's profit or loss

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Definitions:

Return Percentage

The amount of gain or loss on an investment over a specified period, presented as a percentage of the investment's initial cost.

Market Risk Premium

The additional return expected by investors for taking on the risk of investing in the stock market over a risk-free rate.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss, often represented by government bonds.

Portfolio Expected Return

The expected return on a portfolio is the weighted average of the anticipated returns of all the securities included in the portfolio, based on their proportions and expected performances.