Which of the following should be accounted for as subsidiaries in the consolidated financial statements of Seabass CO?

Question

1-	Seabass Co owns% of Cod Co, but has a majority of seats on the board which gives Seabass Co power over Cod Co2-	Seabass Co owns% of Haddock Co, and has% of the voting rights. The remaining% of the voting rights are controlled by a single shareholder3-	Seabass Co owns% of the preference share capital of sole Co which carry no voting rights

a-	Cod Co, Haddock Co and Sole Co 
b-	Haddock Co and Sole Co only. 
c-	Cod Co only
d-	Haddock Co only

Muhammad Hashim Khan · Answer

c- Cod Co only

a majority of seats on the board which gives Seabass Co power over Cod Co.

مستخدم محذوف‎ · Answer

Cod Co only - a company shall be considered as a Subsidiary, when a Parent or Holding company owns% or more of stocks of the former company. In this case, Seabass Co has a majority of seats on the board (more than% controlling interest).

Muhammad Kassab CPA CMA CertIFR · Answer

Cod co will be consolidated since it's controlled by seabass.

The interest in the other companies is treated as investments under equity or fair value method.

Oscar Jr Alisen · Answer

(C) - Cod Co only - a company shall be considered as a Subsidiary, when a Parent or Holding company owns% or more of stocks of the former company. In this case, Seabass Co has a majority of seats on the board (more than% controlling interest). Controlling interest and not the voting right should be the gauging factor to consider the company as subsidiary. All other companies are considered as affiliate or associate with less than% controlling interest.

Muhammad Zain · Answer

I have no idea about this but i think answer is "a"

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Which of the following should be accounted for as subsidiaries in the consolidated financial statements of Seabass CO?

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