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Hello,
Regarding the requirment C
Using exhibit 3, discuss the potential impact of the changes in government regulation
on the accounting treatment of Nomstra Co in the consolidated financial statements
for the year ended 31 December 20X3.My question is even if Peony Has acquired 75% Nomstra co and because of the changes in government regualion and consequently the loss of control it has then to recongnise Nomstra as an associate even though it has an ownership of 75% of its capital?
Thanks.
I don’t keep Kaplan materials. Please summarise the problem so that I and other students understand the problem. Also, use the topic (eg control) not the question name as the header.
BTW – it is CONTROL not ownership of shares that determine subsidiary or associate status. If you only have significant influence, it’s an associate.
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