Parent-company and consolidated financial statement amounts would not be the same for: Capital stock Retained earnings Investments in unconsolidated subsidiaries Investments in consolidated subsidiaries Noncontrolling interest, as it appears in a consolidated balance sheet, refers to: Owners of less than 50 percent of the parent company’s stock Parent’s interest in subsidiary companies Interest expense on subsidiary’s bonds payable Equity in the subsidiary’s net assets held by stockholders other than the parent Pam Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2016, and issued consolidated financial statements at and for the year ended December 31, 2016. Pam and Sun had issued separate-company financial statements in 2015. The change in reporting entity is reported by restating the financial statements of all prior periods presented as consolidated statements. The cumulative effect of the change in reporting entity is shown in a separate category of the income statement net of tax. The income effect of the error is charged or credited directly to beginning retained earnings. The income effect of the accounting change is spread over the current and future periods.
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Parent-company and consolidated financial statement amounts would not be the same for:
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Capital stock
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Retained earnings -
Investments in unconsolidated subsidiaries
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Investments in consolidated subsidiaries
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Noncontrolling interest, as it appears in a consolidated
balance sheet , refers to:-
Owners of less than 50 percent of the parent company’s stock
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Parent’s interest in subsidiary companies
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Interest expense on subsidiary’s bonds payable
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Equity in the subsidiary’s net assets held by stockholders other than the parent
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Pam Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2016, and issued consolidated financial statements at and for the year ended December 31, 2016. Pam and Sun had issued separate-company financial statements in 2015.
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The change in reporting entity is reported by restating the financial statements of all prior periods presented as consolidated statements.
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The cumulative effect of the change in reporting entity is shown in a separate category of the income statement net of tax.
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The income effect of the error is charged or credited directly to beginning retained earnings.
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The income effect of the accounting change is spread over the current and future periods.
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