Conso FS Date of Acquisition

• In the stock acquisition, both the parent and subsidiary will remain to exist.
• The pertinent standard for this topic is PFRS 10
• A parent need not to present conso fs if it meets all the conditions:

  1. It is a wholly-owned subsidiary or is a partially-owned sub of another entity
  2. Not traded in public market
  3. Did not file its fs with SEC
  4. Ultimate parent produces conso fs
• Conso fs - the fs of a group in which the ale & ie of the parent and its subsidiaries are presented as those of a single economic entity
• Group - parent and its subsidiaries
• NCI - equity in a subsidiary not attributable, directly or indirectly, to a parent
• Protective rights - rights designed to protect the interest of the party holding those rights without giving that party power over the entity to which those rights relate
• T or F

  For the purposes of assessing power, only substantive rights and rights that are not protective shall be cocnsidered.

  True.
• Unilateral rights - if two or more investors each have existing rights that give them the unilateral ability to direct different relevant activities, the investor that has the current ability to direct the activities that ,ost significantly affect the returns of the investee has power over the investee.
• True or false

  For a right to be substantive, the holder must have the practical ability to exercise that right.

  True.