ACCA FR Syllabus A. The Conceptual And Regulatory Framework - Definition of a subsidiary - Past Papers ^{2 / 10}

The acquisition of 60% of Zakron Co’s equity share capital on 1 March 20X7. Zakron Co’s activities are
significantly different from the rest of the Poulgo group of companies

The offer to acquire 70% of Unto Co’s equity share capital on 1 November 20X7. The negotiations were finally
signed off during January 20X8

The acquisition of 45% of Speeth Co’s equity share capital on 31 December 20X7. Poulgo Co is able to appoint
three of the ten members of Speeth Co’s board

Foll has 50,000 non-voting and 100,000 voting equity shares in issue with each share receiving the same dividend. Germane owns all of Foll’s non-voting shares and 40,000 of its voting shares

Kipp has 1 million equity shares in issue of which Germane owns 40%. Germane also owns $800,000 out of $1 million 8% convertible loan notes issued by Kipp. These loan notes may be converted on the basis of 40 equity shares for each $100 of loan note, or they may be redeemed in cash at the option of the holder

Germane owns 49% of the equity shares in Polly and 52% of its non-redeemable preference shares. As a result of these investments, Germane receives variable returns from Polly and has the ability to affect these returns through its power over Polly