Concept explainers
Subsidiary stock dividends:the dividends payable on shares of the subsidiary common stock require slight changes in the consolidation entries used in preparing consolidated financial statements. Because stock dividends are issued proportionally to all common stockholders, the relative interest of controlling and non-controlling does not change as a result of stock dividends.
In the preparation of consolidated financial statements for the period of issue, dividends by subsidiary should be eliminated along with the increased common stock and interest additional paid-in capital, if any. As only parent’s dividends are viewed as dividends of the consolidated entity.
The consolidation entries required to prepare consolidated

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Chapter 9 Solutions
ADV.FIN.ACCT. CONNECT+PROCTORIO PLUS
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- Complete the table below with the infomation given - FlagStaff Ltd has a defined benefit pension plan for its employees. The company is considering introducing a defined benefit contribution plan, which will be available to all incoming staff. Although the defined benefit plan is now closed to new staff, the fund is active for all employees who have tenure with the company. In 2020, the following actuarial report was received for the defined benefit plan: 2020/$ Present value of the defined benefit obligation 31 December 2019 18 000 000 Past Service Cost 4 000 000 Net interest ? Current service cost 600 000 Benefits paid 2 000 000 Actuarial gain/loss on DBO ? Present value of the defined benefit obligation 31 December 2020 21 000 000 Fair value of plan assets at 31 December 2019 17 000 000 Return on plan assets ? Contributions paid to the plan during the year 1 500 000 Benefits paid by the plan during the year 2 000 000 Fair value of plan assets at 31 December…arrow_forwardAnswer the following requirement of this general accounting questionarrow_forwardCalculate the return on equity of this financial accounting questionarrow_forward
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