Page 5 - PowerPoint Presentation
P. 5
CHANGES IN DEGREE OF CONTROL
Outcomes
• Identify the acquirer in a business combination that
involves a parent-subsidiary relationship and determine
the acquirer’s percentage ownership interest in the
subsidiary before and after an increase or decrease in
holding.
• Identify and account for acquisition of control,
significant influence and joint control in the
consolidated financial statements as a result of changes
in degree of control arising from:
• acquisition of additional interest in the investee
• additional shares issued by the investee
• rights issue
• share buy-back
• contractual arrangements
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