CAF-6 · Chapter 9 · Question 12 of 15
Consolidated Retained Earnings include 100% of the Parent's retained earnings plus:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Parent's share of Subsidiary's post-acquisition retained earnings.
Explanation
Consolidated retained earnings effectively represent what is 'owned' by the parent's shareholders: Parent's own earnings + their share of what the sub earned while under their control.
More Consolidation (IFRS 10, IFRS 3) MCQs
- Q14'Acquisition-related costs' (like legal and accounting fees for the merger) should be:
- Q15In a Consolidated Statement of Profit or Loss, the 'Profit for the year' is:
- Q1According to IFRS 10, an investor 'Controls' an investee if and only if they have:
- Q2Under IFRS 3 Business Combinations, the 'Acquisition Method' requires:
- Q3What is 'Non-Controlling Interest' (NCI)?