Question：Hawthorn Ltd has holdings in three companies:
a 75% holding in Beech Ltd, a dormant company;
a 55% holding in Chestnut Ltd; and
a 100% holding in Dogwood Ltd, a non-UK resident company.
Which companies are associated with Hawthorn Ltd for the purposes of determining the small profits limits?
A. Chestnut Ltd and Dogwood Ltd only.
B. Beech Ltd, Chestnut Ltd and Dogwood Ltd.
C. Beech Ltd and Chestnut Ltd only.
D. Beech Ltd only.
The correct answer isChestnut Ltd and Dogwood Ltd only.
Worldwide trading companies under common control are associated for small profits rate purposes.
As Beech Ltd is dormant it is not associated with Hawthorn Ltd for small profits rate purposes.
Despite its non-UK residence, Dogwood Ltd is associated with Hawthorn Ltd.
　　高顿网校温馨提醒
　　各位考生，2016年ACCA备考已经开始，为了方便各位学员能更加系统地掌握考试大纲的重点知识，帮助大家充分备考，体验实战，高顿网校开通了全免费的ACCA题库（包括精题真题和全真模考系统），题库里附有详细的答案解析，学员可以通过多种题型加强练习。戳这里进入ACCA免费题库>>>

微信扫一扫，关注ACCA*7资讯，满满的干货喂饱你！ACCA微信公众号：gaodunaccaACCA分享与交流QQ群：227573128 

展开全文