Because It Is Necessary to Distinguish Between the Parents Share

question 46

True/False

Because it is necessary to distinguish between the parents share and the NCI share of equity in the consolidated financial statements, extra columns are added in the consolidation worksheet to divide the group equity into the NCI share and the parent's share.

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Definitions:

Adjust Salaries

The process of modifying the amount of wages or salaries paid to employees, which may be done for reasons such as performance appraisals or inflation adjustments.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Assets

Assets belonging to a company or person, anticipated to yield benefits in the future.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.