Skip to content
Sign inRegister
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA FA

Parent subsidiary

SSara3y ago
Good afternoon, I don't understand why one of the following indicates a parent subsidiary relationship but the other doesn't: Greater than 50% of the preference shares being held by an investor YES Greater than 50% of the preference shares - and debt- being held an investor NO
John MoffatJohn MoffatTutor3y ago#1
I do not know where you read that, but owning more than 50% of the preference shares does not make it a subsidiary. It is owning more than 50% of the equity shares that makes it a subsidiary.
SSara3y ago#2
It was from the BPP revision kit- Mock Exam 1 Section B 36b. A confusing question but thank you for clarifying.
John MoffatJohn MoffatTutor3y ago#3
In my edition of the BPP Revision Kit is gives the answer as 'no' to both of these two statements.
SSara3y ago#4
Seems like its a typo in the latest edition, but thank you for clarifying!
John MoffatJohn MoffatTutor3y ago#5
You are welcome :-)
This topic is locked — no new replies.