When the Parent Has Previously Held Equity Interest in the Subsidiary

question 11

Multiple Choice

When the parent has previously held equity interest in the subsidiary, in accordance with IFRS 3.42, the parent revalues the previously held investment to fair value, recognizing the increment in ___________________.

• A)retained earnings.
• B)net income.
• C)assets.
• D)other comprehensive income.

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Definitions:

Yeast

Unicellular fungus that has a single nucleus and reproduces asexually by budding or fission, or sexually through spore formation.

Fungal Infections

Conditions caused by the growth of fungi in or on the body, leading to symptoms ranging from mild to severe.

Nucleus

Membrane-bound organelle within a eukaryotic cell that contains chromosomes and controls the structure and function of the cell.

Ribosomes

Cellular organelles that function as the site of protein synthesis, reading mRNA and assembling amino acids into proteins.