Asked by Priyani Patel on Apr 24, 2024

verifed

Verified

The shareholders of the parent entity in a group are entitled to:

A) total profits of all group members.
B) parent entity interest in consolidated group profit.
C) non-controlling interest in consolidated group profit.
D) none of the above.

Shareholders

Individuals or entities that own shares in a company, giving them ownership stakes and certain rights regarding its operation.

Parent Entity

A company that holds a controlling interest in another company or subsidiary, having significant influence over its operations and financial decisions.

Total Profits

signifies the entire sum of earnings or profits generated by a business before deducting any expenses.

  • Comprehend the notion of non-controlling interest (NCI) and its depiction in consolidated financial statements.
  • Examine how NCI interacts with profits, retained earnings, and interstate group activities.
verifed

Verified Answer

PN
Patricia Nicole RodriguezMay 02, 2024
Final Answer :
B
Explanation :
The shareholders of the parent entity are entitled to the parent entity's interest in the consolidated group profit, but not to the total profits of all group members or the non-controlling interest in consolidated group profit.