Which of the following statements are NOT correct?
(i) Non-controlling interests do not come into play with a 100% owned subsidiary.
(il) The asset investment in subsidiary appears in the consolidated balance sheet under non-current assets.
(ili) A loan from subsidiary to the parent company will appear under non-current liabilities in the consolidated balance sheet.
Select one:
O a. (0), (1) and (il)
O b. (i) and (ili) only
O c. (ii) and (ill) only
O d. (i) and (il) only
The correct answer is b. (i) and (ili) only.
Statement (i) is not correct because non-controlling interests can still exist in a 100% owned subsidiary if there are minority shareholders present.
Statement (ili) is not correct because a loan from a subsidiary to the parent company would be recorded as an intercompany payable and appear on the consolidated balance sheet under current liabilities or non-current liabilities depending on the terms of the loan.