Where the Controlled Entity's Non-Current Assets Were Not at Fair

question 56

Multiple Choice

Where the controlled entity's non-current assets were not at fair value at the date of purchase and they have not been revalued in the controlled entity's accounts,the treatment in the consolidation entry may include which of the following entries?

• A)
• \[\begin{array} { | c | l | c | c | }
• \hline \mathrm { Dr } & \text { Non-current assets } & X X & \\
• \hline \mathrm { Cr } & \text { Investment in subsidiary } & & \mathrm { XX } \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Share capital } & X X & \\
• \hline \mathrm { Dr } & \text { Retained earnings } & X \mathrm { X } & \\
• \hline \mathrm { Dr } & \text { Non-current assets } & X \mathrm { X } & \\
• \hline \mathrm { Dr } & \text { Goodwill } & X \mathrm { X } & \\
• \hline \mathrm { Cr } & \text { Investment in subsidiary } & & \mathrm { XX } \\
• \hline
• \end{array}\]
• B)
• \(\begin{array}{|c|l|c|c|}
• \hline \text { Dr } & \text { Non-current assets } & X X & \\
• \hline \mathrm{Cr} & \text { Gain on revaluation } & & XX\\
• \hline & & & \\
• \hline \mathrm{Dr} & \text { Share capital } & X X & \\
• \hline \mathrm{Dr} & \text { Retained earnings } & X X & \\
• \hline \mathrm{Dr} & \text { Goodwill } & X X & \\
• \hline \mathrm{Cr} & \text { Investment in subsidiary } & & X X \\
• \hline
• \end{array}\)
• C)
• \[\begin{array} { | c | l | c | c | }
• \hline \mathrm { Dr } & \text { Investment in subsidiary } & X \mathrm { X } & \\
• \hline \mathrm { Cr } & \text { Revaluation surplus } & & \mathrm { XX } \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Share capital } & \mathrm { XX } & \\
• \hline \mathrm { Dr } & \text { Non-current assets } & \mathrm { XX } & \\
• \hline \mathrm { Dr } & \text { Goodwill } & \mathrm { XX } & \\
• \hline \mathrm { Cr } & \text { Investment in subsidiary } & & \mathrm { XX } \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | c | l | c | c | }
• \hline \mathrm { Dr } & \text { Non-current assets } & X X & \\
• \hline \mathrm { Cr } & \text { Revaluation surplus } & & X X \\
• \hline & & & \\
• \hline \mathrm { Cr } & \text { Deferred tax liability } & X X & \\
• \hline \mathrm { Dr } & \text { Share capital } & X X & \\
• \hline \mathrm { Dr } & \text { Retained earnings } & X X & \\
• \hline \mathrm { Dr } & \text { Revaluation surplus } & X X & \\
• \hline \mathrm { Dr } & \text { Goodwill } & X X & \\
• \hline \mathrm { Cr } & \text { Investment in subsidiary } & & X X \\
• \hline
• \end{array}\]

---

Definitions:

Teamwork

The collective work of a team directed towards attaining a shared objective or finishing a task in the most productive and efficient manner.

Conflict Resolution

The process of resolving a dispute or disagreement between parties through negotiation, mediation, or other peaceful methods.

Job-specific Skills

Abilities and knowledge required to perform particular tasks in a job efficiently.

Technical Competence

The ability and skills to perform specific tasks and functions related to a specific field of work or study.