ACCA FA · Chapter 13 · Question 11 of 12
P owns 75% of S. How are S's property, plant and equipment included in the consolidated statement of financial position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 100% of S's property, plant and equipment is added to P's, with the non-controlling interest shown in equity
Explanation
Consolidation presents the group as a single economic entity under P's control, so 100% of the subsidiary's assets and liabilities are combined with the parent's. The 25% that is not owned is reflected by presenting a non-controlling interest within equity. A single-line investment is the equity method used for associates.
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