Fundamentals of Advanced Accounting
6th Edition
ISBN: 9780077862237
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Chapter 4, Problem 1DYS
1.
To determine
Identify the alternative financial statement which display format which the FASB consider for the non-controlling interest.
2.
To determine
Identify the criterion which is used by the FASB to evaluate the desirability of each alternative.
3.
To determine
Identify the specific ways which FASB Concept Statement 6 affect the FASB’s evaluation of these alternatives.
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In accordance with PFRS 9, an entity may reclassify
a. Derivatives
b. Financial assets designated at FVTPL
c.None of these
d. incestments in equity instruments designated at fvtoci
1. PAS 28 defines an ‘associate’ as
Choices
An entity that controls one or more entities.
An entity over which the investor has significant influence.
A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.
An entity that is controlled by another entity.
2. In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss?
Choices
None of these.
Reclassification of financial assets out of the FVTOCI measurement category to FVTPL.
Reclassification of financial assets out of the amortized cost measurement category to FVTPL.
Reclassification of financial assets out of the FVTPL measurement category.
Identify appropriate placements for the components of the non controlling interest in consolidated financial statements.
Chapter 4 Solutions
Fundamentals of Advanced Accounting
Ch. 4 - Prob. 1QCh. 4 - Atwater Company acquires 80 percent of the...Ch. 4 - What is a control premium and how does it affect...Ch. 4 - Prob. 4QCh. 4 - How is the noncontrolling interest in a subsidiary...Ch. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Current liabilities: a. 50,000 b. 46,000 c. 40,000...Ch. 4 - Prob. 20PCh. 4 - Stockholders equity: a. 80,000 b. 90,000 c. 95,000...Ch. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 1DYS
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- 17. When a debt investment at FVOCI is reclassified to FVPL, an entity willa. Remeasure the investment to the original cost and eliminate the cumulative unrealized gain or loss in OCI.b. Transfer the cumulative unrealized gain or loss to retained earningsc. The cumulative gain or loss previously recognized in OCI is reclassified to profit or loss.d. The effective rate at the date of reclassification shall be the basis for interest income to be recognized in subsequent periods.arrow_forwardThe non-controlling interest section of the income statement is:(a) required under GAAP but not under IFRS.(b) required under IFRS but not under GAAP.(c) required under IFRS and GAAP.(d) not reported under GAAP or IFRS.arrow_forwardWhat is the principle for recognition of a financial asset in PFRS 9? A. A financial asset is recognized when, and only when, the entity obtains control of the instrument and has the ability to dispose of the financial asset independent of the actions of others. B.A financial asset is recognized when, and only when, the entity becomes a party to the contractual provisions of the instrument. C. A financial asset is recognized when, and only when, the entity obtains the risks and rewards of ownership of the financial asset and has the ability to dispose of the financial asset. D. A financial asset is recognized when, and only when, it is probable that future economic benefits will flow to the entity and the cost or value of the instrument can be measured reliably.arrow_forward
- Which of the following reclassifications of financial assets is permitted under PFRS 9? a. reclassification out of designated at FVPL to amortized costb. reclassification out of the FVOCI (election) measurement category to financial assetsmeasured at FVPLc. reclassification out of held for trading equity securities to amortized costd. reclassification from amortized cost and to FVPLarrow_forwardFASB ASC 810-10-45-11 states that in some cases parent-entity financial statements may be needed, in addition to consolidated financial statements, to indicate adequately the position of bondholders and other creditors or preferred shareholders of the parent. Why parent-equity financial statements are not a valid substitute for consolidated financial statements?arrow_forwardChoose the letter that corresponds to the answers.arrow_forward
- 16. When a debt investment at FVOCI is reclassified to amortized cost, the entity will a. Remeasure the financial asset to original cost. b. The effective rate used for amortization shall be the effective rate at the date of reclassification. c. The cumulative gain or loss previously recognized in OCI is removed from equity and adjusted against the fair value at the reclassification date. d. The cumulative gain or loss previously recognized in OCI is removed from equity and transferred to profit and loss.arrow_forward18. n accordance with PFRS 9, an entity may reclassify Group of answer choices Financial assets designated at FVTPL Derivatives Investments in equity instruments designated at FVTOCI None of thesearrow_forwardUnder the fair value option for debt investment, entities report all changes in fair value in a.Equity b.Other comprehensive income c.Income or other comprehensive income d.Incomearrow_forward
- Which of the following reclassifications of financial assets is permitted under PFRS 9? a. reclassification out of designated at FVPL to amortized cost b. reclassification out of the FVOCI (election) measurement category to financial assets measured at FVPL c. reclassification out of held for trading equity securities to amortized cost d. reclassification from amortized cost and to FVPLarrow_forwardAccording to AASB 10/IFRS 10 Consolidated Financial Statement, an investor has control of an investee whenarrow_forwardWhich of the following reclassifications of financial assets is permitted under PFRS 9? a. reclassification from FVPL to FVOCI (election) b. reclassification from FVOCI (election) to FVPL c. reclassification from held for trading equity securities to amortized cost d. reclassification from FVOCI (mandatory) to amortized costarrow_forward
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