Question 5.8.23 accounting Which method governs elimination of unrealizedprofit in upstream transactions?a) Proportional to dividends paidb) Subsidiary ownership percentc) Full elimination regardless of percentd) Parent company ownership percent

Explanation of Upstream Transactions:Upstream transactions refer to sales or transfers of goods or…

Answered: Which method governs elimination of…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter14: Intercorporate Investments In Common Stock

Section: Chapter Questions

Problem 8Q

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Which of the following should be presented in the statement of changes in equity? A. Distributions to owners B. Investments by owners C. Change in ownership interest in subsidiary that does not result in a loss of control D. All of these are presented in the statement of changes in equity
The fair value method of accounting for stock a.recognizes dividends as income b.requires the investment to be decreased by the reported net income of the investee c.requires the investment to be increased by the reported net income of the investee d.is only appropriate as part of a consolidation
In finding group retained earnings which of the following items we do not consider ? Parenr retained earnings Subsidiary share of retained earningsat post acquisition Parent share of subsidiary post acquisition profit Parent shareof impairment
Under the cost method, dividends from the subsidiary to the parent Ⓡ a. are recognized in income when received. b. are recognized in income when declared. c. are recognized in income when paid. Od. do not affect income. Save Answer
The method of accounting for subsidiaries where investment income is limited to dividends received is the a. cost method. b. simple equity method. c. investment method. d. sophisticated equity method.
According to IAS 39 Financial Instruments: Recognition and Measurement, at what amount should a financial instrument such as a long-term investment in the shares of a company initially be measured? A. Cost of the nearest equivalent financial instrument B. Fair value of consideration given C. Fair value of consideration given plus directly attributable transaction costs D. Fair value of consideration given less directly attributable transaction costs
If the entity is using the equity method to account for investment in subsidiary, the entry to recognize dividends received from the subsidiary will: a.Be recognized in profit or loss b.Increase the carrying amount of investment c.Decrease the carrying amount of investment d.Be recognized in other comprehensive income
Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet? Business entity concept Money measurement concept Cost concept Going concern concept
When the income statement includes discontinued operations, which amounts require per share presentation?
When share options issued to employees are exercised, the entity shall make a transfer among equity components do nothing recognize a gain for the unamortized balance recognize a loss for the unamortized balance
The cost method of accounting for stock Group of answer choices recognizes dividends as income requires the investment to be decreased by the reported net income of the investee is only appropriate as part of a consolidation requires the investment to be increased by the reported net income of the investee
17. Dividends are recognized in profit or loss only when: a. The amount of the divident can be measured reliably b. The entity's right to receive payment of the dividend is established c. It is probable that the economic benefits associated with the dividend will flow to the entity. d. All of these

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Which method governs elimination of unrealized profit in upstream transactions? a) Proportional to dividends paid b) Subsidiary ownership percent c) Full elimination regardless of percent d) Parent company ownership percent