1.10 Which option(s) applies when consolidating statements of financial position? (2)
i. All inter-company balances should be cancelled
ii. The group share of the whole of subsidiary’s profit is included within group profit
iii. Inter-company profit should be eliminated unless it is realized by sale to an outsider
iv. Subsidiary’s asset values need to be updated at the end of each accounting period
A. ii & iii
B. i & iv
C. i & iii
D. i & ii
1.11 An associate is an entity over which the investor has______. (1)
A. control
B. joint control
C. significant influence