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CA Final Consolidated Financial Statements (Ind AS 110) — practice questions

Explore 46 free Consolidated Financial Statements (Ind AS 110) questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Consolidated Financial Statements (Ind AS 110) questions and exercises with answers

Showing questions 1–30 of 46.

Which belongs in a complete set of consolidated statements?Read the answer and worked solution →The parent's investment in a subsidiary is cancelled against what?Read the answer and worked solution →Whose share capital appears in the consolidated statement of financial position?Read the answer and worked solution →P owes Rs 40,000 to subsidiary S. On consolidation, this payable and S's receivable:Read the answer and worked solution →Which item must be fully eliminated on consolidation?Read the answer and worked solution →Goods sold within the group remain unsold at year end. What must the group eliminate?Read the answer and worked solution →After intragroup trading, consolidated closing inventory is stated at what?Read the answer and worked solution →Profit Rs 50,000 on Rs 4,00,000 intragroup sales; Rs 1,00,000 unsold. Unrealised profit?Read the answer and worked solution →Why do consolidated statements eliminate intragroup sales?Read the answer and worked solution →Separate financial statements follow which principle, as opposed to the economic entity principle?Read the answer and worked solution →Separate financial statements are primarily used for which purposes?Read the answer and worked solution →Which advantage do consolidated statements offer over separate ones?Read the answer and worked solution →Under Ind AS 110, control needs power, variable returns and what else?Read the answer and worked solution →Which is NOT an element of control under IFRS 10?Read the answer and worked solution →Power over an investee generally arises when the parent can direct what?Read the answer and worked solution →IFRS 10 replaced ownership-based definitions with what kind of model?Read the answer and worked solution →Which standard addresses disclosures of interests in other entities?Read the answer and worked solution →Which standard in the IFRS 10, 11, 12 set addresses joint ventures?Read the answer and worked solution →The IFRS 10 control definition made it more likely that an entity is:Read the answer and worked solution →What event prompted the IASB to develop IFRS 10, 11 and 12 in part?Read the answer and worked solution →Which accounting treatment applies to an investor holding 20 to 50 percent of an associate's voting shares?Read the answer and worked solution →Under IFRS, which investments besides associates must use the equity method?Read the answer and worked solution →Under the equity method, an investor's share of an associate's net income does what to the investment?Read the answer and worked solution →Under the equity method, dividends received from an associate do what to the carrying amount?Read the answer and worked solution →Control of an investee, usually through over 50% of voting shares, results in recognition of what?Read the answer and worked solution →An investment of under 20% of voting shares usually creates what?Read the answer and worked solution →A subsidiary is best described as an entity that is:Read the answer and worked solution →Two subsidiaries controlled by the same parent are called what?Read the answer and worked solution →Unlike a division, a subsidiary is:Read the answer and worked solution →Under IFRS 11, an entity whose control is shared by two parties is a:Read the answer and worked solution →

Worked practice questions

Which belongs in a complete set of consolidated statements?

  1. Board meeting minutes
  2. Tax assessment order
  3. Engagement letter copy
  4. Equity changes statement
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Correct answer: D. Equity changes statement

A complete set includes the statement of financial position, profit or loss and OCI, changes in equity, cash flows and explanatory disclosures.

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The parent's investment in a subsidiary is cancelled against what?

  1. Subsidiary share capital
  2. Subsidiary trade payables
  3. Parent retained earnings
  4. Subsidiary goodwill asset
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Correct answer: A. Subsidiary share capital

The parent's asset, investment in subsidiary, is eliminated against the equity (share capital) in the subsidiary's own statement.

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Whose share capital appears in the consolidated statement of financial position?

  1. Subsidiary's share only
  2. Sum of both companies
  3. Parent company's only
  4. Average of both firms
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Correct answer: C. Parent company's only

Only the parent company's share capital account is carried into the consolidated statement; the subsidiary's is cancelled.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property