Portia Ltd

question 26

Multiple Choice

Portia Ltd. acquired 80% of Siro Ltd. on December 31, 20X0. At the acquisition date, Siro's net assets totalled $15,000. Portia uses the cost method to record the acquisition and consolidates using the entity method. At December 31, 20X1, the separate-entity financial statements showed the following:
- During 20X1, Siro sold $7,000 of goods, with a gross margin of 40%, to Portia. At the end of 20X1, $3,000 of the goods were still in Portia's inventory. What amount should be shown on the consolidated statement of financial position for the non-controlling interest at December 31, 20X1?

• A)$ 720
• B)$1,720
• C)$3,480
• D)$3,720

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Definitions:

Training Transfer

The act of successfully applying the competencies, knowledge, and skills gained from a training program to daily tasks and responsibilities in a work setting.

Opportunities to Practise

Situations or activities designed to allow individuals to apply and refine their skills through repeated performance.

Baldwin and Ford

Baldwin and Ford is a model that outlines the factors influencing the transfer of training, including trainee characteristics, training design, and work environment.

Transfer of Training Process

The application of skills, knowledge, or attitudes learned in one context to another context, typically from a training environment to the job.