In the Case of a Wholly Owned Subsidiary, If the Fair

question 40

Multiple Choice

In the case of a wholly owned subsidiary, if the fair value of the consideration transferred plus the fair value of the previously held interest is greater than the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary:

• A) a gain on bargain purchase results.
• B) goodwill has been purchased and must be recognised on consolidation.
• C) the difference is treated as a special equity reserve in the acquirer's accounting records.
• D) the difference is immediately charged to profit or loss in the period in which the business combination occurred.

---

Definitions:

Communicating

The process of sharing information, ideas, feelings, and messages with others.

Leadership Qualifications

The skills, knowledge, and attributes that make an individual suited to lead others.

Antonakis

Likely refers to John Antonakis, a leadership researcher known for his work on leadership and organizational behavior.

Charisma

A personal quality of individual leaders that inspires and attracts followers, often leading them to give strong support.