For a Transaction to Require an Adjustment to the Calculation

question 12

Multiple Choice

For a transaction to require an adjustment to the calculation of a non-controlling interest share of equity it must have which of the following characteristics:
I. The transaction must result in the subsidiary recording a profit or a loss.
II. After the transaction the other party (not the non-controlling party) must have on hand an asset on which unrealised profit is accrued.
III. The initial consolidation adjustment must affect both the statement of financial position and statement of comprehensive income.

• A) I and II only
• B) I, II and III
• C) II and III only
• D) None of the above.

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Definitions:

Scapegoat Theory

A theory suggesting that individuals may be singled out for blame or punishment to alleviate feelings of guilt or responsibility within a group.

Interracial Lynching

The act of murdering someone, typically by hanging, for an alleged offense with or without a legal trial, specifically where the victim and perpetrators are of different races.

Salient

Something that stands out conspicuously or is most noticeable or important in a particular context.

Scapegoat Theory

A theory that suggests that individuals or groups unfairly blame others for their own problems or failures, often as a means of diverting attention or responsibility away from themselves.