Asked by Yenill Jacalan on Jul 16, 2024
Verified
Kansas Limited has two subsidiary entities, Emma Limited and Goldie Limited. Kansas Limited owns 100% of the shares in both entities. Details of the issued share capital are: Kansas Limited $300000 Emma Limited $90000 Goldie Limited $75000\begin{array}{lr}\text { Kansas Limited } & \$ 300000 \\\text { Emma Limited } & \$ 90000 \\\text { Goldie Limited } & \$ 75000\end{array} Kansas Limited Emma Limited Goldie Limited $300000$90000$75000 The consolidated share capital amount of the Kansas - Emma - Goldie group is:
A) $135 000
B) $465 000
C) $165 000
D) $300 000
Consolidated Share Capital
The total amount of a parent company's share capital together with its subsidiaries, reported as one figure in the consolidated financial statements.
Issued Share Capital
Refers to the total value of a company's shares that have been sold to investors and are currently outstanding.
- Compute the aggregate cash balance and equity share capital within consolidated financial reports.
Verified Answer
SC
Savanna CassidyJul 18, 2024
Final Answer :
D
Explanation :
In consolidated financial statements, the share capital of the parent company (Kansas Limited) is reported. The share capital of the subsidiaries (Emma Limited and Goldie Limited) is not added to the parent's share capital because consolidation involves treating the parent and its subsidiaries as a single entity. Therefore, the consolidated share capital amount is the same as the share capital of Kansas Limited, which is $300,000.
Learning Objectives
- Compute the aggregate cash balance and equity share capital within consolidated financial reports.
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