FAC2602
Assignment 1
semester 2
2022.
, QUESTION 1
Select the correct statement regarding shareholding and control within group structures:
a. Control of another company is obtained only when the investor holds more than 50% of the
shareholding.
b. A percentage holding of 48% in the investee will grant the investor the right to have control. A
group of companies is formed only when the parent and the subsidiary agree about the parent’s
exposure
c. sure to variable returns and the right to control those returns.
d. A parent obtains control when it has power over the subsidiary, it has
exposure or rights to variable returns from its involvement with the
subsidiary it has the power over and its ability subsidiary to
affect the amount of the parent’s returns.
An investor (parent) controls an investee (subsidiary) when the investor (parent) is exposed or
has rights to variable returns from its involvement with the investee (subsidiary) and has
the ability to affect those returns through its power over the investee (subsidiary).
An investor (parent) controls an investee (subsidiary) only if all of the following is true for the
investor:
• It has power over the investee (subsidiary).
• It has exposure or rights to variable returns from its involvement with the investee.
• It has the ability to use its power over the investee (subsidiary) to affect the amount of
the investor's returns.
QUESTION 2
Total current assets amounts to:
a. R2 204 500
b. R2 292 800
c. R1 436 600
d. R 856 200
Current Assets = 1 436 600 + 856 200 = 2 292 800
Assignment 1
semester 2
2022.
, QUESTION 1
Select the correct statement regarding shareholding and control within group structures:
a. Control of another company is obtained only when the investor holds more than 50% of the
shareholding.
b. A percentage holding of 48% in the investee will grant the investor the right to have control. A
group of companies is formed only when the parent and the subsidiary agree about the parent’s
exposure
c. sure to variable returns and the right to control those returns.
d. A parent obtains control when it has power over the subsidiary, it has
exposure or rights to variable returns from its involvement with the
subsidiary it has the power over and its ability subsidiary to
affect the amount of the parent’s returns.
An investor (parent) controls an investee (subsidiary) when the investor (parent) is exposed or
has rights to variable returns from its involvement with the investee (subsidiary) and has
the ability to affect those returns through its power over the investee (subsidiary).
An investor (parent) controls an investee (subsidiary) only if all of the following is true for the
investor:
• It has power over the investee (subsidiary).
• It has exposure or rights to variable returns from its involvement with the investee.
• It has the ability to use its power over the investee (subsidiary) to affect the amount of
the investor's returns.
QUESTION 2
Total current assets amounts to:
a. R2 204 500
b. R2 292 800
c. R1 436 600
d. R 856 200
Current Assets = 1 436 600 + 856 200 = 2 292 800
