In the Situation in Which a Subsidiary Is Only Controlled

question 77

Multiple Choice

In the situation in which a subsidiary is only controlled temporarily,AASB 10 requires:

• A) the investment be recorded at fair market value and any gain or loss on acquisition recognised immediately in the statement of comprehensive income.
• B) the subsidiary to be treated as an associate and equity accounting applied.
• C) the results of the subsidiary for the period of time that it was controlled to be included in the consolidated accounts.
• D) the investment to be reported at cost and dividends be accrued when declared.

---

Definitions:

Oedipal Complex

According to Sigmund Freud, a condition that occurs during the phallic stage, when boys are presumed to develop sexual desires for their mother and see their father as a competitor for their mother’s love. The term is a reference to the character of Oedipus in the play by the Greek tragedian Sophocles.

First Year of Life

A critical period in human development marked by rapid physical and cognitive growth, along with significant emotional and psychological changes.

Anal Stage

The second stage in Freud's psychosexual development theory, occurring between 18 months and three years, where the child's libido is focused on the anus, and toilet training is a key experience.