CIMA Financial Reporting F1 Question # 35 Topic 4 Discussion

CIMA Financial Reporting F1 Question # 35 Topic 4 Discussion

F1 Exam Topic 4 Question 35 Discussion:
Question #: 35
Topic #: 4

WX is considering an investment in ST.

At 31 December 20X2 ST had the following balances in its statement of financial position:

F1 Question 35

Which of the following would cause ST to become an associate investment of WX?


A.

WX purchases 15,000 of ST's $1 equity shares and 20,000 of ST's $1 preference shares.


B.

WX purchases 25,000 of ST's $1 equity shares.


C.

WX purchases 75,000 of ST's $1 equity shares.


D.

WX purchases 50,000 of ST's $1 preference shares.


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