1. What is control contemplated in IFRS 10: Consolidated Financial Statements?

Give its elements

and briefly explain each.

2. How is non-controlling interests presented in consolidated financial statements?

3. Give at least three parent entities which are exempt from consolidation.

4. Why is it that the difference from the acquisition-date fair values and carrying amounts of the
subsidiary on the date of business combination are being amortized over the course of
consolidation? Explain the treatment of these amortizations in preparation of consolidated
financial statements.

5. Intercompany transactions are those transactions involving the parent and its subsidiaries. What
are the effects of these intercompany transactions in preparation of consolidated financial
statements? How they are treated in consolidation in terms of preparing consolidated statement
of profit or loss?

6. Give the two types of intercompany sales transactions in terms of seller-buyer relationship. Give
its implication in determining the consolidated net income attributable to parent and non-
controlling interest in net income.

7. Why are the dividends declared by the subsidiary to parent are eliminated?

8. If the business combination resulted to a goodwill, explain the treatment of impairment losses
when it is a full goodwill or a partial goodwill in preparing consolidated statement of profit or loss.

9. How to compute for the consolidated net income attributable to parent and non-controlling
interest in net income?

10. Differentiate non-controlling interest in net income from non-controlling interest in net assets.