Skip to content
Sign inRegister

Ask the Tutor ACCA FR

investment

Xxyzc3y ago
If a company has a 40% shareholding in another company and that is its only investment then why will it be consolidated and not included as investment in the group accounts
P2-D2P2-D2Tutor3y ago#1
Presumably because they have the power to direct the activities of the company through voting rights or contractual arrangement.
Xxyzc3y ago#2
In the answer why is the reason given as that it is its only investment
Sign into reply to this topic.