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Parent-Subsidiary

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Parent-Subsidiary

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 14, 2023 at 8:47 pm #687055
    PurpleLotus
    Participant
    • Topics: 16
    • Replies: 13
    • ☆

    Hello Sir. Why does “Greater than 50% of the preference shares being held by an investor” signify a parent-subsidiary relationship? Isn’t Is only >50% equity shares (+control)?

    June 15, 2023 at 9:19 am #687069
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    Owing >50% of the equity shares would always mean a parent-subsidiary relationship.

    Owning >50% of the preference shares does not create a parent-subsidiary relationship (just as is stated in the ACCA specimen exam).

    June 15, 2023 at 11:06 am #687075
    PurpleLotus
    Participant
    • Topics: 16
    • Replies: 13
    • ☆

    Thank you Sir.

    June 15, 2023 at 5:32 pm #687090
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    You are welcome

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Parent-Subsidiary’ is closed to new replies.

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