ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Textbook Question
Chapter 3, Problem 3.1Q
What is the basic idea underlying the preparation of consolidated financial statements?
Expert Solution & Answer
To determine
Concept Introduction:
Consolidation:The consolidation financial statements are the one which is prepared for providing a consolidated view of financials of the company having subsidiary companies. Consolidation can take place either by acquisition or purchase of voting stock or by merger.
The basic idea of underlying the preparation of consolidated financial statement.
Explanation of Solution
As per the new Companies Act 2013, all listed or unlisted companies having one or more subsidiary including joint venture, associate company are required to prepare consolidated financial statement along with their standalone financial statement for every financial year.
The basic idea for preparing the consolidated financial statements is that the financial position of the parent company and it’s all subsidiaries can be determined and the end results of the operations of both the companies can be ascertained. This is done on the basis of that the companies are working as a single unit.
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Financial Accounting Question please give answer
SUBJECT FINANCIAL ACCOUNTING
E3.20
(Appendix 3A) Converting Indirect Method Cash Flows to Direct Method Cash Flows. The Burnet
Corporation disclosed the following statement of earnings in its current annual report (amounts in thousands):
Earnings Statement
Revenues
Cost of goods sold
Gross margin
Depreciation and amortization expense
Selling, general and administrative expenses
Operating income.
Unusual gain on sale of land
Net income..
Current Year
$2,430
(1,200)
1,230
(260)
(240)
730
70
$ 800
In addition, the company reported the following data regarding its operating cash flow in its year-end statement
of cash flow (amounts in thousands):
TA 6
SALSHAN Ona af
(Indirect Method)
Operating activities
Net income
Statement of Cash Flow
Depreciation and amortization expense
Accounts receivable
Inventory..
Accounts payable
Gain on sale of land
Cash flow from operating activities.
Current Year
$800
260
(250)
(5)
50
(70)
$785
Using the above information for the current year, construct the Burnet Corporation's cash flow…
Chapter 3 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 3 - What is the basic idea underlying the preparation...Ch. 3 - How might consolidated statements help an investor...Ch. 3 - Prob. 3.3QCh. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - Prob. 3.12QCh. 3 - What is meant by indirect control? Give an...Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Prob. 3.18QCh. 3 - Prob. 3.1CCh. 3 - Prob. 3.2CCh. 3 - Prob. 3.1.1ECh. 3 - Prob. 3.1.2ECh. 3 - Prob. 3.1.3ECh. 3 - Prob. 3.1.4ECh. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Prob. 3.2.3ECh. 3 - Prob. 3.2.4ECh. 3 - Prob. 3.3.1ECh. 3 - Prob. 3.3.2ECh. 3 - Prob. 3.3.3ECh. 3 - Prob. 3.4.1ECh. 3 - Prob. 3.4.2ECh. 3 - Prob. 3.4.3ECh. 3 - Prob. 3.4.4ECh. 3 - Balance Sheet Consolidation On January 1, 20X3,...Ch. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Reporting for a Variable Interest Entity Gamble...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19.1PCh. 3 - Prob. 3.19.2PCh. 3 - Prob. 3.20PCh. 3 - Prob. 3.21PCh. 3 - Prob. 3.22PCh. 3 - Prob. 3.23PCh. 3 - Prob. 3.24PCh. 3 - Prob. 3.25PCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Consolidated Worksheet at End of the First Year of...Ch. 3 - Prob. 3.31P
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