Where a Parent Entity Acquires an Investment in a Subsidiary

question 17

Multiple Choice

Where a parent entity acquires an investment in a subsidiary for less than the fair value of the identifiable net assets and contingent liabilities acquired, it is necessary to recognise the item in the consolidation worksheet as a gain in bargain purchase and then to:

• A) transfer it to a business combination valuation reserve account
• B) goodwill;
• C) investment in the shares of the subsidiary;
• D) profit or loss.

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Definitions:

Therapeutic Proactivity

An approach in therapy that involves active participation and initiative from the therapist to facilitate healing or positive change.

Externalized Coping Style

A way of dealing with stress or problems by attributing them to external factors and seeking solutions outside oneself.

Physical Altercations

Refers to instances where individuals engage in physical conflicts or fights.

Mouthing Off

Speaking to someone in a rude or offensive manner, often impulsively or without respect for the other person.