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: $\begin{array}{lr}
\text { Kansas Limited } & \$ 300000 \
\text { Emma Limited } & \$ 90000 \
\text { Goldie Limited } & \$ 75000
\end{array}$ The consolidated share capital amount of the Kansas - Emma - Goldie group is:
A) $135 000
B) $465 000
C) $165 000
D) $300 000

Question

Quizplus · Accepted Answer

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.