ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Question
Chapter 7, Problem 7.3C
To determine
Concept Introduction:
Non-Controlling Interest
Non-Controlling interest is also known as minority interest. It is the portion of equity ownership in a subsidiary company which is not attributable to the parent company.
Requirement 1
The way an amount of income is assigned to non-controlling shareholders.
b
To determine
Concept Introduction:
Non-Controlling Interest
Non-Controlling interest is also known as minority interest. It is the portion of equity ownership in a subsidiary company which is not attributable to the parent company.
Requirement 2
The reporting of non-controlling interest.
c.
To determine
Concept Introduction:
Non-Controlling Interest
Non-Controlling interest is also known as minority interest. It is the portion of equity ownership in a subsidiary company which is not attributable to the parent company.
Requirement 3
To Explain: The effect intercompany profits have on computation of income both to land and equipment.
d.
To determine
Concept Introduction:
Non-Controlling Interest
Non-Controlling interest is also known as minority interest. It is the portion of equity ownership in a subsidiary company which is not attributable to the parent company.
Requirement 4
To Explain: Whether it is useful that the non-controlling shareholders of a subsidiary likely to find the amounts assigned in consolidated financial statement.
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Students have asked these similar questions
How is non-controlling interest in the subsidiary’s net assets presented in the consolidated statement of financial position?
a. Within equity but separately from the equity of the owners of the parents.
b. Within equity as part of retained earnings.
c. Any of these as a matter of accounting policy choice.
d. As a mezzanine item between liabilities and equity.
Which of the following statements regarding IFRS consolidated financial statements is/are correct:
(i) An entity that has equity investments in one or more other entities is required to present consolidated financial statements
(ii) A parent whose debt or equity instruments are not traded in a public market is not required to present consolidated financial statements
(iii) Consolidated financial statements present the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries as those of a single economic entity
In the consolidated statement of comprehensive income to be prepared by the parent corporation, which of the following items will affect both consolidated net income attributable to parent and non-controlling interest in net income?
Impairment loss on goodwill recognized when the noncontrolling interest is measured at proportionate share of fair value of net assets of subsidiary.
Amortization of difference between fair value and book value of liability of subsidiary.
Realization of unrealized gain or (loss) from sale of parent company to subsidiary company.
Recognition of gain on bargain purchase arising from business combination.
Chapter 7 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 7 - Prob. 7.1QCh. 7 - Prob. 7.2QCh. 7 - Prob. 7.3QCh. 7 - Prob. 7.4QCh. 7 - Prob. 7.5QCh. 7 - Prob. 7.6QCh. 7 - Prob. 7.7QCh. 7 - Prob. 7.8QCh. 7 - Prob. 7.9QCh. 7 - Prob. 7.10Q
Ch. 7 - Prob. 7.11QCh. 7 - Prob. 7.12QCh. 7 - Prob. 7.13QCh. 7 - Prob. 7.14QCh. 7 - Prob. 7.15QCh. 7 - Prob. 7.16QCh. 7 - Prob. 7.17QCh. 7 - Prob. 7.18AQCh. 7 - Prob. 7.1CCh. 7 - Prob. 7.2CCh. 7 - Prob. 7.3CCh. 7 - Prob. 7.4CCh. 7 - Prob. 7.5CCh. 7 - Prob. 7.1.1ECh. 7 - Prob. 7.1.2ECh. 7 - Prob. 7.1.3ECh. 7 - Prob. 7.1.4ECh. 7 - Prob. 7.1.5ECh. 7 - Prob. 7.2.1ECh. 7 - Prob. 7.2.2ECh. 7 - Prob. 7.2.3ECh. 7 - Prob. 7.2.4ECh. 7 - Prob. 7.2.5ECh. 7 - Prob. 7.2.6ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Transfer of Depreciable Asset at Year-End Pitcher...Ch. 7 - Prob. 7.9ECh. 7 - Sale of Equipment to Subsidiary in Current Period...Ch. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Prob. 7.21ECh. 7 - Prob. 7.22ECh. 7 - Prob. 7.23AECh. 7 - Prob. 7.24PCh. 7 - Prob. 7.25PCh. 7 - Prob. 7.26PCh. 7 - Prob. 7.27PCh. 7 - Prob. 7.28.1PCh. 7 - Prob. 7.28.2PCh. 7 - Prob. 7.28.3PCh. 7 - Prob. 7.28.4PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33PCh. 7 - Prob. 7.34PCh. 7 - Prob. 7.35PCh. 7 - Prob. 7.37PCh. 7 - Prob. 7.38PCh. 7 - Prob. 7.41AP
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following pertaining to Consolidated Financial Statements is correct?A. The preparation of Consolidated Financial Statements means that the companiesinvolved cease to operate as separate legal entities.B. The preparation of Consolidated Financial Statements is at the Parent Company'sdiscretion.C. When one company has control over another, Consolidated Financial Statementsmust be prepared for the combined entity.D. Before preparing Consolidated Financial Statements, a subsidiary's FinancialStatements prior to the date of acquisition must be restated.arrow_forwardWhat is the correct method for treating a vesting differential linked to the acquisition of shares? privileged rights of the subsidiary by the parent company? Select an answer: a. It must be allocated to identifiable net assets or goodwill. b. It must be distributed in proportion to the identifiable assets and liabilities of the subsidiary. c. It must be charged to consolidated retained earnings or credited to contributed surplus. d. It must be taken care of in the current year.arrow_forwardDescribe the difference between the economic entity concept and the parent company concept approaches to the reporting of subsidiary assetsand liabilities in the consolidated financial statements on the date of the acquisition.arrow_forward
- Which of the following regarding the preparation of Consolidated Financial Statement iscorrect?A. Once the parent company prepares Consolidated Financial Statements, it no longerneeds to prepare financial statements for its own activities.B. Only the subsidiaries are required to prepare Financial Statements.C. Consolidated Financial Statements are required by the Parent Company for reportingpurposes only; each company must continue to prepare its own FinancialStatements.D. Consolidated Financial Statements are required only when both companies arepublicly traded.arrow_forwardDo you think the FASB made the correct decision in requiring consolidated financial statements to recognize all subsidiary's assets and liabilities at fair value regardless of the percentage ownership acquired by the parent?arrow_forwardThe following independent statements may be true or false. Discuss the circumstances whereby the statement is true and the circumstances whereby it is false. (a) Goodwill on consolidation in the Consolidated Statement of Financial Position is the difference between consideration paid by the Parent and the Parent's share of fair value of identifiable net assets of a partially-owned Subsidiary.arrow_forward
- How is the amount assigned to the non-controlling interest normally determined when a consolidated balance sheet is prepared immediately after a business combination?arrow_forwardWhich of the following are considered separate financial statements? a. Those presented by a parent in addition to the consolidated financial statements, in compliance with a regulatory requirement. b. Those presented by an entity, which does not have a subsidiary or associate and is not a venturer in jointly controlled entity. c. Those presented by an entity which does not have any equity interest in another entity. d. Financial statements of an entity that applies the equity method.arrow_forwardAnswer these questions about consolidation accounting:1. Define parent company. Define subsidiary company.2. How do consolidated financial statements differ from the financial statements of a singlecompany?3. Which company’s name appears on the consolidated financial statements? How much ofthe subsidiary’s shares must the parent own before using consolidated statements?arrow_forward
- Consolidated financial statements:a. Consolidated financial statements provide information about the assetsliabilities, equity, income, and expenses of both the parent and itssubsidiaries as a single reporting entity.b. Consolidated financial statements provide information about the assetsliabilities, equity, income, and expenses of the parentas a single reporting entity.c. Consolidated financial statements provide information about the assetsliabilities, equity, income, and expenses of the subsidiariesas a single reporting entity.d. None of the abovearrow_forwardAnswer with true or false. 1. The computation of consolidated retained earnings do not include non-controlling interest. 2. The investment in subsidiary account is recorded in the separate financial statement of parent entity. 3.arrow_forwardS1: In a working paper elimination (in journal entry format) for the consolidated balance sheet of a parent company and its wholly owned subsidiary on the date of a business combination, the subtotal of the credits to the subsidiary’s stockholders’ equity accounts equals the current fair value of the subsidiary’s identifiable net assets. S2: In a completed working paper elimination (in journal entry format) for a parent company and its wholly owned subsidiary on the date of business combination, the total of the credits generally equals the parent company’s total cost of its investment in the subsidiary. Only S1 is correct Only S2 is correct Both statements are correct Both statements are incorrectarrow_forward
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