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investment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › investment

  • This topic has 2 replies, 2 voices, and was last updated 2 years ago by xyzc.
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  • January 15, 2023 at 4:08 pm #676068
    xyzc
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    • Topics: 413
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    • ☆☆☆☆

    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

    January 18, 2023 at 9:08 pm #676946
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7172
    • ☆☆☆☆☆

    Presumably because they have the power to direct the activities of the company through voting rights or contractual arrangement.

    January 28, 2023 at 9:21 am #677511
    xyzc
    Participant
    • Topics: 413
    • Replies: 175
    • ☆☆☆☆

    In the answer why is the reason given as that it is its only investment

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