Chapter 11 - Mixed Groups

Question 1

Mixed Group (D-Shaped Group)

Answer 1

Where a parent has both a direct and indirect investment in a particular sub-subsidiary

Question 2

Consolidation

Answer 2

Once control is established the sub-subsidiary is consolidated

Question 3

Mixed Group determinant

Answer 3

Parent owns more than 50% of subsidiary

The combination of parent’s and subsidiary’s direct ownership in the sub-subsidiary must be greater than 50%

Question 4

Effective control

Answer 4

Total of parent’s direct and indirect ownership of the subsidiary

Question 5

Effective Ownership

Answer 5

Direct ownership
+
Indirect ownership

Question 6

Non-controlling interest of sub-subsidiary in a mixed group

Answer 6

100% less effective ownership

Question 7

Point of Control

Answer 7

Date of acquisition