Each of the following independent statements may be true or false. Discuss the circumstances whereby the statement is true and the circumstances whereby it is false. (a) Goodwill on consolidation in the Consolidated Statement of Financial Position is the difference between consideration paid by the Parent and the Parent's share of fair value of identifiable net assets of a partially-owned Subsidiary. (b) Dividends declared by a Group (which is shown as an appropriation in the Consolidated Statement of Changes in Equity) comprises dividends declared by the Parent and dividends declared by a Subsidiary to its Non-controlling Interests. (c) A Group will always report a Consolidated Profit after Tax that is larger than the Consolidated Profit after Tax attributable to the Shareholders of the Parent.
Question 2
Each of the following independent statements may be true or false. Discuss the circumstances whereby the statement is true and the circumstances whereby it is false.
(a)
(b) Dividends declared by a Group (which is shown as an appropriation in the Consolidated Statement of Changes in Equity) comprises dividends declared by the Parent and dividends declared by a Subsidiary to its Non-controlling Interests.
(c) A Group will always report a Consolidated Profit after Tax that is larger than the Consolidated Profit after Tax attributable to the Shareholders of the Parent.
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