- CFA Exams
- CFA Exam: Level II 2021
- Study Session 5. Financial Reporting and Analysis (1)
- Reading 13. Intercorporate Investments
- Subject 5. Business combinations
CFA Practice Question
Stockholders' equity may contain all of the following components, except:
II. Employee Stock Option Plan accruals.
III. Minimum pension liability.
IV. Reinvested earnings.
I. Minority interests in consolidated subsidiaries.
II. Employee Stock Option Plan accruals.
III. Minimum pension liability.
IV. Reinvested earnings.
Correct Answer: The equity section may contain all of them
Both IFRS and U.S. GAAP present minority interests in consolidated subsidiaries as a separate line item in the equity section.
User Contributed Comments 3
| User | Comment |
|---|---|
| pjdeschenes | Why minimum pension liability? |
| daverco | Minimum pension liability shows up as a reduction of shareholder's equity. |
| davidt876 | did not know that.. |