Segment reporting shall apply to A. Both the separate financial statements of an entity and the consolidated financial statements of a group B. Neither the separate financial statements of an entity nor the consolidated financial statements of a group C. Consolidated financial statements of a group only D. Separate financial statements of an entity only

Segment reporting shall apply to A. Both the separate financial statements of an entity and the consolidated financial statements of a group B. Neither the separate financial statements of an entity nor the consolidated financial statements of a group C. Consolidated financial statements of a group only D. Separate financial statements of an entity only

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which consolidation method should be used in preparing consolidated financial statements in accordance with IFRS? A. Proportionate consolidation method.B. Either identifiable net assets or fair value enterprise method.C. New entity method.D. Parent company method.
Which of the following are not related parties? a. A parent and its subsidiary b. Two or more subsidiaries with the same parent c. Related party transactions (in the separate financial statements) d. Related party transactions (in the consolidated financial statements)
In a consolidated statements workpaper, which items are carried forward from one section to another? Select one: a. The total of the income section to the retained earnings section and then the total of the retained earnings section to the balance sheet section. b. The eliminations must balance for each section in order to carry them forward. c. Parents retained earnings, but not Subsidiary d. Each section on the workpaper is separate, so no numbers are carried forward
Consolidated financial statements are the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are: a. presented separately in the same financial report. b. presented as if those of a single economic unit. c. presented as a combined unit using simple addition. d. presented as a secondary set of financial statements
Related party transactions and their outstanding balances are only reported in the group’s consolidated FS. TRUE OR FALSE
Choose the correct.Which of the following items is not required to be reported in interim financial statements for each material operating segment?a. Revenues from external customers.b. Intersegment revenues.c. Segment assets.d. Segment profit or loss.
Define Consolidated financial statements.
Which of the following items is not required to be reported in interim financial statements for each material operating segment?a. Revenues from external customers.b. Intersegment revenues.c. Segment assets.d. Segment profit or loss.
Discuss how intercompany transactions and debts should be treated for consolidation purposes, in both the statement of financial position and the statement of comprehensive income.
Explain and apply the definition of a subsidiary within relevant accounting standards. NB: Answer question in two paragraph.
Francis Company has 24,000 shares of common stock outstanding at the beginning of 2016. Francis issued 3,000 additional shares on May 1 and 2,000 additional shares on September 30. It also has two convertible securities outstanding at the end of 2016. These are: 1. Convertible preferred stock: 2,500 shares of 8.5%, $50 par, preferred stock were issued on January 2, 2013, for $60 per share. Each share of preferred stock is convertible into 3 shares of common stock. Current dividends have been declared and paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of $250,000 and an interest rate of 5.5% were issued at par in 2015. Each $1,000 bond is convertible into 20 shares of common stock. To date, no bonds have been converted. Francis earned net income of $72,500 during 2016. The income tax rate is 30%. Calculate diluted earnings per share for 2016 and the incremental EPS of the preferred stock and convertible bonds. If required, round your…