The calculation of notional profits of entities with cross-shareholdings is required to:
A) determine the parent ownership interest in the subsidiaries.
B) determine the NCI ownership interest in the subsidiaries.
C) determine both the parent and NCI ownership interests in the subsidiaries.
D) none of the above.

Question

Quizplus · Accepted Answer

The calculation of notional profits of entities with cross-shareholdings is essential for determining both the parent and NCI (Non-Controlling Interest) ownership interests in the subsidiaries. This is because cross-shareholdings can complicate the calculation of ownership percentages, affecting the allocation of profits between the parent and NCI.

The Calculation of Notional Profits of Entities with Cross-Shareholdings Is