Professional Documents
Culture Documents
Chapter 7
Consolidated Financial Statements (Part 4)
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QUIZ:
1. This type of group arises when a parent’s subsidiary has its own subsidiary (sometimes referred to
as ‘sub-subsidiary’).
a. Vertical group
b. Horizontal group
c. Simple group
d. D-shaped group
2. This type of group arises when a parent has a direct controlling interest in at least one subsidiary. In
addition, both the parent and the subsidiary together hold a controlling interest in another entity.
a. Vertical group
b. Horizontal group
c. Complex group
d. D-shaped group
3. On January 1, 20x1, Subsidiary One acquires 60% interest in Subsidiary Two. On January 1, 20x3,
Parent acquires 80% interest in Subsidiary One. Identify the acquisition dates of Subsidiary One and
Subsidiary Two.
Subsidiary One Subsidiary Two
a. January 1, 20x1 January 1, 20x1
b. January 1, 20x3 January 1, 20x3
c. January 1, 20x1 January 1, 20x3
d. January 1, 20x3 January 1, 20x1
4. Parent acquires 80% interest in Subsidiary One on January 1, 20x1. Parent acquires 25% interest in
Subsidiary Two on January 1, 20x2. Subsidiary One acquires 30% interest in Subsidiary Two on
January 1, 20x3.
Subsidiary One Subsidiary Two
a. January 1, 20x1 January 1, 20x1
b. January 1, 20x3 January 1, 20x3
c. January 1, 20x1 January 1, 20x3
d. January 1, 20x3 January 1, 20x1