Which of the Following Statements Is Incorrect with Regards to Non-Controlling

question 42

Multiple Choice

Which of the following statements is incorrect with regards to non-controlling interests in subsidiaries?

• A) The requirement to eliminate the effects of intragroup transactions holds whether or not there are non-controlling interests.
• B) The non-controlling interest's share in the dividends paid or proposed by the subsidiary is eliminated on consolidation.
• C) The non-controlling interest's share of the profits of the subsidiary is calculated after adjustments to eliminate income and expenses of the subsidiary that are unrealised from the economic entity's perspective.
• D) Management fees paid in an intragroup transaction are considered realised when determining non-controlling interests in a subsidiary.

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Definitions:

Beta

In statistics, it often refers to the probability of making a Type II error, or in finance, a measure of how much a stock's price could move in relation to the market.

Type II Error

A statistical error that occurs when a false null hypothesis is not rejected, implying that a true effect is missed.

Type I Error

A mistake wherein a true null hypothesis is incorrectly rejected, commonly termed as a "false positive."

Alpha

In statistics, often refers to the significance level used in hypothesis testing, typically set at 0.05 or 0.01, representing the probability of incorrectly rejecting the null hypothesis.