Multinational Consolidation and Currency Translation

What is it called when the share capital is less than 20%?

Investment

Subsidiary

Joint Control

Associate

By which magazine was invented Big Mac Index?

Financial Times

The economist

Forbes

Fortune

Current / Non-current method uses the closing rate for…

All non-current assets and liabilities.

All current assets and liabilities.

Which method is based on the prudence principle?

Closing rate method

Historical rate method

Temporal method

Lower/higher value method

We could say an entity has significant control over another entity when the share capital is over?

30%

45%

50%

80%

Which are the four valuation methods used in the temporal method?

What is financial consolidation?

The merger and acquisition of many smaller companies into much larger ones.

The treatment of a group of companies and other entities as one entity for tax purposes.

The aggregation of financial statements of a group company as consolidated financial statements.

What is the functional currency?

The local currency of a company.

The currency of the primary economic environment.

The currency in which to present the financial statements.

What determines the allocation of consolidation methods?

The amount of control a company has.

The amount of debt financing.

The subsidiary's local currency.

The amount of shares the parent holds.

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