Tasks - Group Accounting

CHAPTER 1
1. Which of the following is the criterion for the treatment of an investment as an

associate?
A. Ownership of a majority of the equity shares
B. Ability to exercise control
C. Existence of significant influence
D. Exposure to variable returns from involvement with the investee
2. Which TWO of the following indicate the presence of significant influence?

A. The investor owns 330,000 of the 1,500,000 equity voting shares of the investee
B. The investor has representation on the board of directors of the investee
C. The investor is able to insist that all of the sales of the investee are made to a
subsidiary of the investor
D. The investor controls the votes of a majority of the board members
3. Company A has a controlling financial interest in Company B through its 60%

ownership interest in Company B. Company B, in turn, owns 40% of Company C.
Company A also directly owns 20% of Company C.
Company B and Company C are voting interest entities and all ownership interests
represent voting interests. A majority voting interest of an entity is assumed to result
in a controlling financial interest.
Compute the voting interests of Company A in Company C.

Compute the economic interests of Company A in Company C.
5. Company A owns 40% of Company B. Company B, in turn, has a controlling

financial interest in Company C through its 60% ownership interest in Company C.
What should be the economic interests of Company A in Company C?
6. Company A owns 40% of Company B. Company B, in turn, has a controlling

financial interest in Company C through its 60% ownership interest in Company C.
Does Company A control Company C?
7. Company A owns 75% of the voting shares of Company B, which in turn owns 40%
of the voting shares of Company C. Company A also owns directly 15% of the voting
shares of Company C.
A majority voting shares of an entity is assumed to result in a controlling financial
interest.
What should be the voting interests of Company A in Company C?
interest.
Compute the economic interests of Company A in Company C.
9. Company A owns 60% of the ordinary shares, to which voting rights are attached,
of Company B. Company A also owns 20% of the ordinary shares, to which voting
rights are attached, of Company C.
Company B owns 20% of the ordinary shares, to which voting rights are attached, of
Company C.
All ordinary shares in both Companies carry equal voting rights. A majority voting rights
of an entity is assumed to result in a controlling financial interest.
In the separate financial statement of Company A, it should be shown that:
A. Company B is a subsidiary, Company C is an associate
B. Both Company B and Company C are subsidiaries
C. Both Company B and Company C are associates
D. Company B is a subsidiary, Company C is a trade investment
In the consolidated financial statement prepared by Company A, it should be shown
that:
A. Company B is a subsidiary, Company C is an associate
B. Both Company B and Company C are subsidiaries
C. Both Company B and Company C are associates
D. Company B is a subsidiary, Company C is a trade investment
interest.
Which of the following should be shown in the consolidated financial statement of
Company A and its subsidiaries?
A. The economic interests of Company A in Company C is 55%, Company C is an
associate
B. The economic interests of Company A in Company C is 55%, Company C is a
subsidiary
C. The economic interests of Company A in Company C is 39%, Company C is an
associate
D. The economic interests of Company A in Company C is 39%, Company C is an
subsidiary
interest.
Which of the following statement is true?
A. Company C is shown as a subsidiary in the separate financial statement of
Company A, and as an associate in the separate financial statement of Company B
B. Company C is shown as a subsidiary in the separate financial statements of both
Company A and Company B
C. Company C is shown as an associate in the separate financial statements of both
Company A and Company B
D. Company C is shown as an associate in the separate financial statement of
Company A, and as a subsidiary in the separate financial statement of Company B
13. Company P acquired 4,000 of the 10,000 equity voting shares and 8,000 of the
10,000 non-voting preference shares in Company A.
Company P acquired 4,000 of the 10,000 equity voting shares in Company B and had
a signed agreement giving it the power to appoint or remove all of the directors of
Company B.
Which investment would be classified as a subsidiary of Company P?
A. Company A only
B. Company B only
C. Both Company A and Company B
D. Neither Company A nor Company B
of the voting shares of Company C and 30% of the voting shares of Company D.
Company A also owns directly 15% of the voting shares of Company C and 15% of
the voting shares of Company D.
interest.
Which Companies should Company A consolidate?
interest.
A. Both Company C and Company D are subsidiaries of Company A
B. Company C is a subsidiary of Company A, Company D is an associate of Company
A
C. Both Company C and Company D are associates of Company B
D. Company C is an associate of Company A, Company D is a trade investment of
Company A
interest.
A. Both Company C and Company D are associates of Company A
B. Company C is a subsidiary of Company A, Company D is an associate of Company
A
C. Both Company C and Company D are associates of Company B
D. Both Company B and Company D are associates of Company A
17. Company A and several private equity investors establish Company X. Company
A owns 49% of the voting stock of Company X. None of the private equity investors
own more than 15% of the voting stock. Through the articles of incorporation of
Company X, the board of directors makes all significant financial and operating
decisions. Any matters voted on by the shareholders of Company X are considered
protective rights. The board of directors will consist of seven directors, four of which
will be appointed by Company A as long as Company A owns more than 45% of the
voting stock. The significant decisions are made at the board level by simple majority.
The articles of incorporation cannot be changed without a supermajority of the vote of
Company X’s shareholders. The private equity investors do not have any veto or
substantive participating rights.
Should Company A consolidate Company X?
CHAPTER 3
1. On 1 January 20X4, Company A purchased 30% equity shares of Company B, its
only associate, for VND 3.8 billion in cash. The profit of Company B for the year to 31
December 20X4 was VND 1.6 billion.
What amount should be shown as “investment in associate” in the separate statement
of financial position of Company A as at 31 December 20X4?
2. On 1 January 20X4, Company A purchased 30% equity shares of Company B for

VND 3.8 billion in cash. The profit of Company B for the year to 31 December 20X4
was VND 1.6 billion.
Company A has one subsidiary and no other associates apart from Company B.
What amount should be shown as “investment in associate” in the consolidated
statement of financial position of Company A as at 31 December 20X4?
3. On 1 January 20X4, Company A purchased 30% equity shares of Company B, its

only associate, for VND 3.8 billion in cash. Related professional fee incurred for this
purchase was 0.2 billion. The profit of Company B for the year to 31 December 20X4
was VND 1.6 billion.
4. On 1 January 20X4, Company A purchased 30% equity shares of Company B for

VND 3.8 billion in cash. Related professional fee incurred for this purchase was 0.2
billion. The profit of Company B for the year to 31 December 20X4 was VND 1.6 billion.
5. On 1 January 20X4, Company A acquired 30 million of Company B’s 100 million

shares in exchange for 5 million of its own shares. The fair value of Company A’s
shares at the date of this exchange was VND 16,000 each.
The profit of Company B for the year to 31 December 20X4 was VND 26 billion.
6. On 1 January 20X4, Company A acquired 30 million of Company B’s 100 million

shares in exchange for 5 million of its own shares. The fair value of Company A’s
shares at the date of this exchange was VND 16,000 each.
The profit of Company B for the year to 31 December 20X4 was VND 26 billion.
7. Company A owns 30% of Company B’s ordinary shares, giving Company A

significant influence over Company B. The profit of Company B for the year to 31
December 20X4 was VND 1.6 billion.
Company A has one subsidiary and no other investments apart from Company B.
What amount should be shown as “share of profit of associates” in the consolidated
statement of profit or loss of Company A for the year ended at 31 December 20X4?
8. Company A owns 30% of Company B, which it purchased on 1 January 20X4 for

VND 4 billion.
The profit of Company B for the year to 31 December 20X4 was VND 1.6 billion. A
dividend of 1 billion utilizing this profit was declared on 1 February 20X5.
What amount should be included in “financial income” in respect of this declared
dividend in the separate statement of profit or loss of Company A for the year ended
at 31 December 20X4?

VND 4 billion.
The profit of Company B for the year to 31 December 20X4 was VND 1.6 billion. A
dividend of 1 billion utilizing this profit was declared on 1 February 20X5.
What amount should be included in “financial income” in respect of this declared
dividend in the separate statement of profit or loss of Company A for the year ended
at 31 December 20X5?
10. Company A owns 30% of Company B and exercises significant influence over it.
Company B sold goods to Company A for VND 160 million. These goods costs VND
120 million. Company A still had 25% of these goods in inventory at the year end.
What amount should be deducted from consolidated retained earnings in respect of
this transaction?
11. Company A owns 30% of Company B and exercises significant influence over it.
During the year to 31 December 20X4, Company B sold VND 200 million goods to
Company A, of which 40% were still held in inventory by Company A at the year end.
Company B applied a mark-up of 25% on all goods sold.
What effect would the above transactions have on group inventory at 31 December
20X4?
A. Debit group inventory VND 20 million
B. Credit group inventory VND 20 million
C. No effect on group inventory
D. Credit group inventory VND 16 million
12. On 1 January 20X4, Company A acquired 40,000 of the 100,000 equity voting
shares of Company B for VND 4 billion in cash.
The profit of Company B for the year to 31 December 20X4 was VND 1.6 billion. This
profit was partly utilized to pay dividend of VND 1 billion on 1 February 20X5.
The profit of Company B for the year to 31 December 20X5 was VND 1.4 billion.
13. On 1 January 20X4, Company A acquired 40,000 of the 100,000 equity voting
shares of Company B for VND 4 billion in cash.
The profit of Company B for the year to 31 December 20X4 was VND 1.6 billion. This
profit was partly utilized to pay dividend of VND 1 billion on 1 February 20X5.
The profit of Company B for the year to 31 December 20X5 was VND 1.4 billion.
14. On 1 January 20X4, Company A acquired 4,000 of the 10,000 equity voting shares
of Company B, its only associate, for VND 4 billion in cash. The profit of Company B
for the year to 31 December 20X4 was VND 1.6 billion. Company B made a dividend
payment of VND 1 billion on 1 December 20X4. On 31 December 20X4, an intangible
fixed asset of Company B was revalued with a VND 0.2 billion increase in value.
VND 4 billion. On 31 December 20X4, an intangible fixed asset of Company B was
revalued with a VND 0.2 billion increase in value.
Which entries should be used to reflect this revaluation in preparing the consolidated
financial statements of Company A as at 31 December 20X4?
16. On 1 January 20X4, Company A acquired 4,000 of the 10,000 equity voting shares
of Company B for VND 4 billion in cash. The profit of Company B for the year to 31
December 20X4 was VND 1.6 billion. Company B made a dividend payment of VND
1 billion on 1 December 20X4. On 31 December 20X4, an intangible fixed asset of
Company B was revalued with a VND 0.2 billion increase in value.
17. On 1 January 20X4, Company A purchased 30% outstanding shares of Company

B, its only associate, for VND 3,800 million in cash. At that date, Company B has
retained earnings of VND 2,000 million. On 1 March 20X4, Company B made a
dividend payment of VND 500 million out of this retained earnings.
The profit of Company B for the year to 31 December 20X4 was VND 1,500 million.
CHAPTER 4
1. Company A obtained 100% equity voting shares of Company B on 1 January 20X8.
The purchase consideration comprised:
• VND 25,000 million cash payable at acquisition date
• A tangible fixed asset with fair value of VND 2,000 million (exclusive of 10% VAT)
Related professional fee was VND 200 million. General administrative costs incurred
were VND 100 million.
What was the cost of this business combination?
2. Company A obtained 80% equity voting shares of Company B on 1 January 20X8.

• Inventories with fair value of VND 1,100 million (inclusive of 10% VAT)
Related legal fee and valuation fee were VND 300 million in total. General
administrative costs incurred were VND 100 million.
What was the value of this investment?
3. On 1 August 20X7, Company A purchased 18 million of the 24 million equity shares

of Company B. The acquisition was through a share exchange of two shares in
Company A for every three shares in Company B. The market price of a share in
Company A at 1 August 20X7 was VND 20,000.
What was the amount of the consideration attributable to Company A for the
acquisition of Company B?
4. On 1 August 20X7, Company A acquired 3 million of Company B’s 4 million ordinary

shares.
• New shares issued in Company A at acquisition on a 1 for 3 basis. The market
value of Company A’s shares on the acquisition date was VND 20,000 each.
Equity issuance fees were totaling VND 200 million.
• 10,000 new bonds issued in Company A at acquisition. The market value of
Company A’s bonds on the acquisition date was VND 1 million each. Bond
issuance costs were totaling VND 100 million.
Related legal fee was VND 100 million. Related valuation and consultation fee were
VND 400 million. Related audit fee was VND 200 million. General administrative costs
incurred were VND 100 million.
What was the amount of the consideration transferred at the date of acquisition?
5. Company A acquired 80% equity voting shares of Company B on 1 January 20X8.

At the acquisition date, the carrying amount of the identifiable net assets of Company
B was VND 11,000 million.
At the acquisition date, the fair values of Company B’s net assets were equal to their
carrying amounts, except:
• A production equipment which was recorded at VND 1,000 million on accounting
system, however, its fair value was VND 1,500 million
• A provision for liabilities with carrying amount of 0, however, its fair value was VND
300 million.
What should be the fair value of the identifiable net assets of Company B at the date
of acquisition?
6. Company A acquired 80% equity shares of Company B on 1 January 20X8.

At the acquisition date, the carrying amount and the fair value of the identifiable net
assets of Company B was VND 11 billion and 11.5 billion respectively.
What was the amount of Company A’s share of the fair value of the identifiable net
assets of Company B at the date of acquisition?
7. Company A acquired 80% equity shares of Company B on 1 January 20X8.

What was the amount of the non-controlling interest based on net assets at the date
of acquisition?
8. Company A acquired 80% equity voting shares of Company B on 1 January 20X8.

B was VND 11 billion.
• A production equipment which was recorded at VND 1 billion on accounting
system, however, its fair value was VND 1.5 billion
• A provision for liabilities with carrying amount of 0, however, its fair value was VND
0.3 billion.
What was the amount of the non-controlling interest based on net assets at the date
of acquisition? What was the amount of Company A’s share of the fair value of the
identifiable net assets of Company B at the date of acquisition?
9. Company A acquired 80% equity shares of Company B on 1 January 20X8 by

paying VND 10 billion cash
What was the goodwill arising on acquisition?
10. On 1 August 20X7, Company A acquired 3 million of Company B’s 4 million

ordinary shares.
• New shares issued in Company A at acquisition on a 1 for 3 basis. The market
value of Company A’s shares on the acquisition date was VND 20,000 each.
Equity issuance fees were totaling VND 200 million.
• 10,000 new bonds issued in Company A at acquisition. The market value of
Company A’s bonds on the acquisition date was VND 1 million each. Bond
issuance costs were totaling VND 100 million.
Related legal fee was VND 100 million. Related valuation and consultation fee were
VND 400 million. Related audit fee was VND 200 million. General administrative costs
incurred were VND 100 million.
B was VND 60,000 million.
• A production equipment which was recorded at VND 1,000 million on accounting
system, however, its fair value was VND 1,500 million
• A long-term borrowing with carrying amount of VND 3,000 million, however, its fair
value was VND 3,100 million.
What was the goodwill arising on acquisition?
11. Company A acquired 80% of Company B on 1 January 20X8.

The revenue of Company A and Company B for the year ended at 31 December 20X8
were VND 60 billion and 100 billion respectively.
During the year 20X8, Company A sold goods to Company B at a price of VND 12
billion. These goods had cost Company A VND 9 billion. During the year to 31
December 20X8, Company B had sold VND 10 billion (at cost to Company B) of these
goods for VND 15 billion.
What will be included in “revenue” in respect of this intragroup transaction in the
consolidated profit or loss of Company A for the year ended at 31 December 20X8?
12. Company A acquired 80% equity share capital of Company B on 1 January 20X8.
The cost of sales of Company A and Company B for the year ended at 31 December
20X8 were VND 60 billion and 100 billion respectively.
During the year 20X8, Company B sold goods to a Company A for VND 32 billion at a
margin of 25%. Three quarters of these goods remained in inventory of Company A at
year end.
What is the cost of sales in Company A’s consolidated statement of profit or loss for
the year ended at 31 December 20X8?
13. Company A acquired 80% of Company B on 1 January 20X8. In the post-

acquisition period, Company A sold goods to Company B at a price of VND 12 billion.
These goods had cost Company A VND 9 billion. During the year to 31 December
20X8, Company B had sold VND 10 billion (at cost to Company B) of these goods for
VND 15 billion.
How will this affect group cost of sales in the consolidated statement of profit or loss
of Company A for the year ended at 31 December 20X8?
A. Increase by VND 9.5 billion
B. Decrease by VND 9.5 billion
C. Increase by VND 11.5 billion
D. Decrease by VND 11.5 billion
14. Company A obtained 80% equity voting shares of Company B on 1 January 20X8
by exchanging its VND 10,000 million goods. The market value of these goods at the
acquisition date was 11,000 million (inclusive of 10% VAT)
Related legal fee and valuation fee were VND 300 million in total. General
administrative costs incurred were VND 100 million.
Before accounting for the acquisition, the total amount shown as “inventory” in the
separate statement of financial position of Company A was VND 100,000 miliion
What amount should be shown as “inventory” in the separate statement of financial
position of Company A after recording above acquisition?
15. Company A purchased 80% equity voting shares of Company B on 1 January

20X8 for VND 10,000 million cash.
Related legal cost and valuation cost were VND 300 million. General administrative
costs incurred were VND 100 million. All of these costs were paid by cash immediately.
Before accounting for the acquisition, the total asset in the separate statement of
financial position of Company A was VND 1,000,000 miliion.
What should be the total asset in the separate statement of financial position of
Company A after recording above acquisition?
of Company B. The acquisition was through new shares issued in Company A at
acquisition on a 1 for 3 basis. The par value of Company A’s shares on the acquisition
date was VND 10,000. The market value of Company A’s shares on the acquisition
date was VND 25,000. Equity issuance fees were totaling VND 200 million.
Before accounting for the acquisition, the share capital in the separate statement of
financial position of Company A was VND 200,000 million.
What should be the share capital in the separate statement of financial position of
of Company B. The acquisition was through new shares issued in Company A at
acquisition on a 1 for 3 basis. The par value of Company A’s shares on the acquisition
date was VND 10,000. The market value of Company A’s shares on the acquisition
date was VND 25,000. Equity issuance fees were totaling VND 200 million.
Before accounting for the acquisition, the share premium in the separate statement of
financial position of Company A was VND 250,000 million.
What should be the share premium in the separate statement of financial position of
CHAPTER 6
1. Under VAS 28, what is operating segment?
2. Under VAS 28, what is reportable segment?
3. Who are related parties according to VAS 26?
4. Company A sold goods to a related party. These goods cost VND 200 million is sold
at a margin of 50%.
Which amount is the sales value?
5. Company A sold goods to a related party for VND 120 million. Company A applied
a gross margin of 40% on all goods sold.
What was the cost of these goods?
6. Company A sold VND 200 million goods to a related party. Company A applied a
mark-up of 25% on all goods sold.
What was the selling price of these goods?
7. Company A sold goods to a related party for VND 160 million. Company A applied
a mark-up of 25% on all goods sold.
What was the cost of these goods?

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CHAPTER 1

1. Which of the following is the criterion for the treatment of an investment as an

2. Which TWO of the following indicate the presence of significant influence?

3. Company A has a controlling financial interest in Company B through its 60%

4. Company A has a controlling financial interest in Company B through its 60%

5. Company A owns 40% of Company B. Company B, in turn, has a controlling

6. Company A owns 40% of Company B. Company B, in turn, has a controlling

2. On 1 January 20X4, Company A purchased 30% equity shares of Company B for

3. On 1 January 20X4, Company A purchased 30% equity shares of Company B, its

4. On 1 January 20X4, Company A purchased 30% equity shares of Company B for

5. On 1 January 20X4, Company A acquired 30 million of Company B’s 100 million

6. On 1 January 20X4, Company A acquired 30 million of Company B’s 100 million

7. Company A owns 30% of Company B’s ordinary shares, giving Company A

8. Company A owns 30% of Company B, which it purchased on 1 January 20X4 for

9. Company A owns 30% of Company B, which it purchased on 1 January 20X4 for

17. On 1 January 20X4, Company A purchased 30% outstanding shares of Company

2. Company A obtained 80% equity voting shares of Company B on 1 January 20X8.

3. On 1 August 20X7, Company A purchased 18 million of the 24 million equity shares

4. On 1 August 20X7, Company A acquired 3 million of Company B’s 4 million ordinary

5. Company A acquired 80% equity voting shares of Company B on 1 January 20X8.

6. Company A acquired 80% equity shares of Company B on 1 January 20X8.

7. Company A acquired 80% equity shares of Company B on 1 January 20X8.

8. Company A acquired 80% equity voting shares of Company B on 1 January 20X8.

9. Company A acquired 80% equity shares of Company B on 1 January 20X8 by

10. On 1 August 20X7, Company A acquired 3 million of Company B’s 4 million

11. Company A acquired 80% of Company B on 1 January 20X8.

13. Company A acquired 80% of Company B on 1 January 20X8. In the post-

15. Company A purchased 80% equity voting shares of Company B on 1 January

2. Under VAS 28, what is reportable segment?

3. Who are related parties according to VAS 26?

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