Where a Change in Ownership Interest Results in the Loss

question 7

Multiple Choice

Where a change in ownership interest results in the loss of control of a subsidiary:

• A)the gain or loss in the parent's records will equal the consolidated gain or loss;
• B)the remaining investment will be accounted for in accordance with AASB 9 Financial Instruments;
• C)the remaining investment will be accounted for in accordance with AASB 127 Separate Financial Statements;
• D)the gain or loss will be recorded in other comprehensive income.

---

Definitions:

Hamer v. Sidway

A landmark case in contract law regarding forbearance as consideration, where a promise not to do something can be as legally binding as a promise to do something.

Unforeseen Circumstances

Situations or events that could not have been predicted or expected, often leading to disruptions in agreements or plans.

Preexisting Duty Rule

A legal principle stating that an existing contractual obligation cannot serve as consideration for a new contract.

Bilateral Contract

A bilateral contract is a mutually binding agreement in which each party makes a promise to the other, such as a promise to perform a service in exchange for payment.