Kowloon Limited Is an Entity Listed in Hong Kong

question 30

Multiple Choice

Kowloon Limited is an entity listed in Hong Kong. Kowloon Limited holds a 100% investment in Aussie Pty Ltd, an Australian based company, who in turn holds a 90% interest in Skippy Pty Ltd. Aussie Pty Ltd and the Aussie group (comprising Aussie and Skippy) are both non-reporting entities. Which of the following statements is correct?

• A) Aussie Pty Ltd will be required to prepare consolidated financial statements as the ultimate Australian parent.
• B) Aussie Pty Ltd will not be required to prepare consolidated financial statements as they are a non-reporting entity.
• C) Aussie Pty Ltd will be required to prepare consolidated financial statements only if directed to do so by ASIC.
• D) Aussie Pty Ltd will not be required to prepare consolidated financial statements as Kowloon is a listed foreign entity.

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Definitions:

360-Degree Feedback

A system or process in which employees receive confidential, anonymous feedback from the people who work around them.

Homeostasis

The self-regulating process by which biological systems maintain stability while adjusting to conditions that are optimal for survival.

Flow Experience

A psychological state of deep immersion and involvement in an activity, where time seems to pass unnoticed, and one's skills are used to their fullest.

360-Degree Feedback

A performance appraisal system where an employee receives confidential, anonymous feedback from those who work around them, including peers, superiors, and sometimes clients.