Question

In short-answer format(ie.thisdoes not have to be presented in the form of an essayor formal report), and with reference to the relevant accounting standard(s), answerthe following questions:

What is a non-controlling interest, and how is a non-controlling interest disclosed in consolidated financial statements?

If Nat acquires a 60% interest in West, on consolidation which elimination entries should be done at 60% and which should be eliminated at 100% (if any)?Why? In the consolidated financial statements of the group will the assets and liabilities of West be shown at 60% or 100%? Why?

In what circumstances would anentity consolidate the financial statements of an entity in which it owned no shares?

Explain in your own words, using a diagram if you wish, the concept of an indirect non-controlling interest.Does the existence of an indirect non-controlling interest have any impact on the adjustments for intra-group transactions?Why or why not?