a
Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.
The entry required to record the acquisition of S on P’s books on December 31, 20X6.
b
Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.
The entries recorded in books of S on December 31, 20X6 related to business combination if push down accounting is applied
c
Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.
The entries that P would record during immediately after combination
d
Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.
The entries recorded by P during 20X7 related to investment in S using equity method.
e
Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.
The elimination entries recorded in 20X7 for full set of books
f
Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.
The consolidation entries recorded 20X8
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Chapter 4 Solutions
Advanced Financial Accounting
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