Why do we need to pass the consolidation elimination entry everytime we prepare a consolidated financial statement?

Q: Which statement about US GAAP and IFRS accounting standards is true? US GAAP requires that assets be…

A: US GAAP is a set of principles which all are followed by all company in U.S. and  IFRS is also…

Q: What is your perspective on the implication for consolidated group accounts?

A: Introduction: A parent business and all of its affiliates make up a consolidated group. A…

Q: Why are administrative expenses that are incurred during a liquidation classified as liabilities…

A: Administrative expenses are those expenses related to liquidating cost and preserving the assets, in…

Q: The accrual of restructuring costs creates obligations (liabilities) referred to as exit or disposal…

A: 1.

Q: Under normal conditions, how does a reorganization plan become effective?

A: Reorganisation Plan:   It refers to a plan filed with a bankruptcy court judge by a company. The…

Q: On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for…

A: On 05.01.20x9, Parent company acquired outstanding shares of Subsidiary company = 80% Purchase…

Q: Give difference between Liquidation and Reorganization.

A: The legal proceeding, which involves a business or person that cannot be able to pay back the…

Q: Accounting changes may be Multiple Choice O mandatory. voluntary. voluntary or mandatory.…

A: "Accounting changes" are modifications to an organization's reporting practices, estimations,…

Q: When a loss contingency is recognized, where is it reported on the income statement?

A: A financial statement that lists the company's earnings and expenses is called an income statement.…

Q: Why must the eliminating entries be entered in the consolidation worksheet each time consolidated…

A: 1. Elimination is used to delete a partnership in another partnership, whether from a parent to a…

Q: Which among the following advocates for accounting all the prospective losses but leave aside all…

A: Solution: Conservatism convention  advocates for accounting all the prospective losses but leave…

Q: How does Dropbox apply GAAP to revenue recognition? Explain and give examples.

A: Generally Accepted Accounting(GAAP) GAAP are a set of rules the encompass the details, complexities…

Q: When it comes to generating consolidated financial reports, time is a complicating factor that has…

A: This question explains about the consolidation is done after the purchase, which adds to the…

Q: The accrual of restructuring costs creates obligations (liabilities) referred to as exit or disposal…

A: Given is: The accrual of restructuring costs creates obligations (liabilities) referred to as exit…

Q: Why might a company choose not to use revaluation accounting?

A: Revaluation accounting is a method to revalue non current assets of the companies as per fair value…

Q: How should the assets and liabilities of a disposal group held for sale be reported? A. The assets…

A: A disposal group is a group of assets and liabilities that are proposed to be sold off or discarded…

Q: What are the implications of a revised accounting estimate

A: The implications of a revised accounting estimate will be explained :

Q: Explain how the revenue recognition principle supports the elimination of intercompany transactions…

A: Introduction:- Consolidated Financial Statements are the overall group's financial statements, It…

Q: Why is it needed to reclassify financial asset when changing business model?

A: The question is related IFRS-9 "Financial Instruments". As per IFRS 9, reclassification is allowed…

Q: Compare and contrast the sorts of accounting changes and the methods used to account for them

A: The sorts of accounting changes and the methods will be explained:

Q: On January 1, 2021, Primair Corporation loaned Vista Company $300,000 and agreed to guarantee all of…

A:

Q: Describe how, despite the fact they include different accounts, conceptually, the [C] entry under…

A: Bookkeeping is defined as the recording of the financial transactions and it is the part of the…

Q: gue that donated assets should not be reported in company’s balance sheet. Base your arguments on…

A: Under current U.S. GAAP assets that have been donated to a company are recorded at fair value…

Q: Derecognition is the removal of all or part of a recognised asset or liability from an entity’s…

A: If any amount is received for an asset which is Derecognized then it should be treated as liability.…

Q: Make an acronym or a mnemonic on the new revenue recognition standards and make a comparison with…

A: Revenue recognition is a generally accepted accounting principles, that identifies…

Q: What are the arguments for giving separate accountingrecognition to the conversion feature of…

A: The separate accounting for recognition is needed as convertible debenture has the feature of…

Q: a. to determine the ACA for the joining entity's asset Incorrect b. to spread the ACA over the…

A: TCSA (Tax collected at Source of Assets) and ACA (Affordable Care Act) are two tax…

Q: Why is it important to report discontinued operations separately from income from continuing…

A: Discontinued operations referred to the segments of a firm's core business line that have been shut…

Q: What are some of the possible costs that could result from a revision of an accounting standard?

A: Financial Accounting Standards Board (FASB):   It is a private, non-profit organization which is a…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.