Where a Change in Ownership Interest Results in the Loss

question 35

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 recorded at fair value 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.

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Definitions:

Compounded Semi-annually

A technique used to compute interest in which the interest is compounded semi-annually by being added to the principal sum two times within the year.

Compounded Quarterly

The process where interest on an investment is calculated and added to the principal every three months, contributing to the growth of the investment amount.

Compounded Monthly

Entails the regular addition of interest to the principal balance of a loan or deposit every month, affecting overall returns or costs.

Semi-monthly Payments

Payments that are made twice a month, often on the 1st and 15th, typically in the context of salaries or loans.