Concept explainers
a
Introduction: When a parent sells subsidiary shares, a gain or loss normally occurs and is recorded on the seller’s books, which needed to be recognized in consolidated net income. Under ASE 810, changes in a parent’s ownership interest in a subsidiary while the parent retains control require an adjustment to the amount assigned to the non-controlling interest to reflect its change in ownership in the subsidiary. Any difference in fair value of the controlling interest results in an adjustment to the
The effect of sales of MT shares to BM Company on consolidated statements of HM, if BM is an unrelated company.
b
Introduction: When a parent sells subsidiary shares, a gain or loss normally occurs and is recorded on the seller’s books, which needed to be recognized in consolidated net income. Under ASE 810, changes in a parent’s ownership interest in a subsidiary while the parent retains control require an adjustment to the amount assigned to the non-controlling interest to reflect its change in ownership in the subsidiary. Any difference in fair value of the controlling interest results in an adjustment to the stockholders’ equity attributable to the controlling interest, through an adjustment to additional paid-in capital.
The effect of sales of MT shares to BM Company on consolidated statements of HM, if HM holds 60 percent of BM’s voting shares.

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Chapter 9 Solutions
ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
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- Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
