What happens when the parent has 75% of the sub and the sub in turn has 66 2/3% of another sub. I work this out to be 50% of S2 - vertical group structure, and there is FVA on S2/revaluation of PPE. Is this control or significant influence?
HI George, This is a good question in the ACCA P2/ CIMA F2. The answer is parent has control over sub and sub-sub. sub has control over sub. the rule is: >50%, control. Why do we account for 75% X 66%=50% is because we want to account for ownership, ie, how much to share. Hope this helps. Steve
very helpful
I saw it many time thanks
I like your presentation. It is really helpful. Thx:)
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Like the lecture slow enough for my understanding. Thank you
Thank you, Sir
What happens when the parent has 75% of the sub and the sub in turn has 66 2/3% of another sub. I work this out to be 50% of S2 - vertical group structure, and there is FVA on S2/revaluation of PPE. Is this control or significant influence?
HI George, This is a good question in the ACCA P2/ CIMA F2.
The answer is parent has control over sub and sub-sub.
sub has control over sub.
the rule is: >50%, control.
Why do we account for 75% X 66%=50% is because we want to account for ownership, ie, how much to share.
Hope this helps.
Steve
Thank you for the clarification.
you are most welcome George