Which of the Following Consolidation Concepts Are Described Correctly

question 84

Multiple Choice

Which of the following consolidation concepts are described correctly?

• A) The entity concept requires the inclusion of all the parent entity assets and the proportionate share of the assets and liabilities of the subsidiaries where the proportion is based on the direct ownership of the capital of the subsidiary by parent companies within the group.
• B) The proprietary concept includes all the assets and liabilities of the parent company and subsidiaries as assets and liabilities of the group. Non-controlling interest is treated as a liability of the group.
• C) The parent-entity concept includes all assets and liabilities of the parent and its subsidiaries in the consolidated accounts. The non-controlling interest is treated as a liability of the group.
• D) The proprietary concept includes all the assets and liabilities of the parent company and subsidiaries as assets and liabilities of the group. Non-controlling interest is treated as a liability of the group; the parent-entity concept includes all assets and liabilities of the parent and its subsidiaries in the consolidated accounts. The non-controlling interest is treated as a liability of the group.

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Definitions:

Bank Book Value

The nominal value of a bank's assets minus its liabilities, as recorded on its balance sheet.

Transmission

The process of conveying or sending power, energy, or information from one place to another, often referring to mechanisms in vehicles or communication devices.

Mirror Image Rule

A common law rule that requires that the terms of the offeree’s acceptance adhere exactly to the terms of the offeror’s offer for a valid contract to be formed.

Acceptance

The action of consenting to receive or undertake something offered.