A acquired a 60% holding in B on 1 July 20X6. At this date, A gave B a $500,000 8% loan. The
interest on the loan has been accounted for correctly in the individual financial statements.
The totals for finance costs for the year to 31 December 20X6 in the individual financial
statements are shown below.
A 200,000
B 70,000
What are consolidated finance costs for the year to 31 December 20X6?
A $215,000
B $225,000
C $230,000
D $250,000
According to me answer should be $ 215,000
(200k) + (70k/2) - (500k * 8% * 6/12)
But as per exam kit its (b) 225,000
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Consolidated finance cost
Thank u so much
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