Which of the following statement is true concerning the fair value of non-controlling interest (NCI) on the

date of acquisition?
Group of answer choices
The fair value of the NCI on the date of acquisition should be less than the NCI percentage of the fair
value of the net assets of the subsidiary.
The fair value of the NCI on the date of acquisition should always be raised to the fair value of the net
assets of the subsidiary.
The fair value of the NCI on the date of acquisition should be more than the NCI percentage of the fair
value of the net assets of the subsidiary.
The fair value of the NCI on the date of acquisition should always be reduced to the fair value of the net
assets of the subsidiary.

Which of the following statements, based on IFRS 10 – Consolidated Financial Statements, are true?
I. Power is the existing right to direct relevant activities of the investee.
II. Protective rights cannot give power to the investor.
III. A principal loses control when it delegates decision – making rights to another party.
IV. Start of consolidation is the date of acquisition of control.
Group of answer choices
All statements are true.
Only statements I, III and IV are true.
Only statements I, II and IV are true.
Only statements II, III and IV are true.

Which of the following cost of business combination can be included in the value charged to Paid – in
Capital in Excess of Par?
Group of answer choices
Direct cost of acquisition.
Stock issuance cost if share is issued as consideration.
Direct cost of acquisition and stock issuance cost if stock is issued as consideration.
Direct and indirect cost of acquisition.

Consolidation elimination entries are entered on

Group of answer choices
The parent company’s accounting records only.
Both the parent company’s and the subsidiary’s accounting records.
The subsidiary’s accounting records.
Neither the parent company’s nor the subsidiary’s accounting records.

Consolidated financial statements are intended primarily for the use of

Group of answer choices
Management of the parent company.
Stockholders’ of the parent company.
Creditors of the parent company.
Taxing authorities.