Which of the Following Statements Regarding the Non-Controlling Interest Is

question 54

Multiple Choice

Which of the following statements regarding the non-controlling interest is FALSE?

• A)The non-controlling interest must be allocated a portion of the comprehensive income of the group as well as a portion of the net assets of the group.
• B)When a subsidiary has foreign currency transactions, and records foreign currency gains or losses, the non-controlling interest will be allocated a portion of those gains or losses since it shares in the net income of the subsidiary.
• C)For the purpose of the allocation to the non-controlling interest, the financial statement of the subsidiary is first translated into the functional currency.
• D)In addition to foreign currency transactions, the subsidiary may have a functional currency that is different than the parent's functional currency.