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The Consolidation Technique of NCI Allocation Is Based on the Proposition

question 22

True/False

The consolidation technique of NCI allocation is based on the proposition that non-controlling shareholders have an ownership interest in group equity.


Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian financial vehicle for individuals to save for retirement on a tax-sheltered basis.

Nominal Rate

The advertised or stated interest rate on a loan or investment, not accounting for any fees or compounding of interest.

Effective Rate

The real interest rate on an investment or loan, taking into account the effect of compounding over a given period.

Compounding Interval

The frequency at which interest is added to the principal amount of an investment or loan which can affect the total interest earned or paid.

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