Premium Essay

Advanced

In: Other Topics

Submitted By Mlestyorini
Words 1702
Pages 7
Chapter 3

AN INTRODUCTION TO CONSOLIDATED FINANCIAL STATEMENTS

Chapter Outline

A BUSINESS COMBINATION UNDER GAAP INCLUDES COMBINATIONS IN WHICH ONE OR MORE COMPANIES BECOME SUBSIDIARIES OF A PARENT CORPORATION.

A A corporation that holds a majority interest (over 50%) of the voting stock of another corporation is referred to as the parent company.

B The interest not held by the parent company is referred to as the noncontrolling interest.

C A corporation whose outstanding voting stock is over 50% owned by another corporation is a subsidiary of that corporation.

D GAAP states that the acquisition of additional shares of a subsidiary is recorded by an increase in the investment account and a reduction of the noncontrolling interest, based on the carrying amount of the noncontrolling interest at the additional acquisition date. APIC is adjusted for any difference between the price and the carrying amount.

E The parent company and subsidiary exist as separate legal entities and maintain separate accounting records. However, each reporting period their separate accounting records are combined into one set of consolidated financial statements for reporting the financial position and results of operations of a consolidated reporting entity.

1 Consolidated financial statements are prepared for all the companies under the control of a single management team to reflect a single reporting entity with multiple divisions.

2 The purpose of consolidated financial statements is to present fairly, primarily for the benefit of the owners and creditors of the parent company, the results of operations and the financial position of a parent and all its subsidiaries as if the consolidated group were a single entity.

3 The subsidiary will continue to report the results of its separate operations to its noncontrolling…...

Similar Documents

Premium Essay

Advanced Financial

...Chapter 7 Check Figures Baker, Christensen, Cottrell Advanced Financial Accounting, Ninth Edition E7-4 E7-6 E7-8 E7-9 E7-10 E7-11 E7-12 E7-13 E7-14 E7-15 E7-17 E7-18 E7-19 E7-20 E7-21 E7-22 E7-23A P7-24 P7-25 P7-27 P7-30 P7-31 P7-32 P7-33 P7-34 P7-35 P7-36 P7-37 P7-38 P7-39A P7-40A P7-41A P7-42A c. $38,000 b. Net Adjustment Accumulated Depreciation $14,000 b. Net Adjustment Accumulated Depreciation $115,000 b. Net Adjustment Accumulated Depreciation $80,000 c. Net Adjustment Accumulated Depreciation $78,000 a. $142,500 a. Investment in Andrews Co. $10,500 a. 20X4: Income to Controlling Interest $110,000 b. 20X4: Income to Controlling Interest $116,250 a. $80,000 e. $51,000 b. Income to Controlling Interest $160,700 c. $283,000 c. Increase Accumulated Depreciation $57,000 b. Increase Accumulated Depreciation $138,000 c. $66,500 d. $2,650 b. Income to Controlling Interest $2,815,250 a. Income from TV Sales Co. $45,500 b. Dividend Income $13,000 a. Income to Controlling Interest $43,900 a. Net Income $94,400 b. Accumulated Depreciation $168,000 g. Income to Noncontrolling Interest $26,800 c. Net Income $90,000 b. NCI in NA of Temple Corp. $104,000 b. NCI in NA of Lane Co. $52,400 b. NCI in NA of Lane Co. $54,400 b. NCI in NA of Skate Co. $53,400 a. $4,710 f. $122,600 k. $375,800 b. NCI in NA of Block Corp. $25,500 d. NCI in NA of Schmid Dist. $999,000 Consolidated Retained Earnings, December 31, 20X8: $449,000 c. Retained Earnings, December 31, 20X4: $213,135 d. NCI in NA of......

Words: 317 - Pages: 2

Premium Essay

Advanced Auditing

...standards high. References Armstrong, M. Ketz, J.E. & Owsen, D. (2003). ‘Ethics education in accounting: moving toward ethical motivation and ethical behavior’. Journal of Accounting Education, vol. 21. P. 1-16. Campbell, D. (2008). ‘Ethical Decision making’. Retrieved from http://www2.accaglobal.com/pubs/students/publications/student_accountant/archive/sa_mar08_campbell.pdf IFAC (2006). ‘Approaches to the Development and Maintenance of Professional Values, Ethics and Attitudes in Accounting Education Programs’. International Accounting Education Standards Board, Information Paper, August 2006. Retrieved from http://www.accountingweb-cgi.com/whitepapers/approaches_to.pdf Knapp, Rittenberg, Johnstone, Gramling (2011) Custom Edition. Advanced Auditing. South-western/ Cengage Learning: USA...

Words: 1508 - Pages: 7

Premium Essay

Advanced Fuel

...Advanced Fuel Corporation Kaize Lei Yu Wu Minh Nguyen 1. The type of financing largely depends on 3 factors: - Financial status of AFC - Amount of upside gain in a diversified portfolio - Record of past banking involvement in corporate venturing Advanced fuels Corporation is still at the early stage of formation, thus it is unlikely to break even in the future years and its probability of bankruptcy is high. Due to the difficulty in classifying loans to friends into either current or non-current liabilities, the exact ratio cannot be calculated. If the ratio is less than 1, then this means AFC will have trouble paying interest repayments if business suddenly fails. Investment banks cannot achieve their desired results by forming portfolios of risky debt securities because it cannot share fully in upside gains beyond the stated interest rate. 2. Planning: Finding out all the advantages and disadvantages of the proposal. This involves looking at all the components of the business plan to see if it is reliable and that the information is reasonable. Researching: Find out what Dr. Aplin’s work and education history to establish what his skills are and if the skills are related to the firm he proposes to start. Capitalist’s analysis: This can mean talking to other entrepreneurs who have started business with an innovative idea and have now established themselves as a mature company. 3. Liquidation Value The liquidation value is the value if the business is......

Words: 1366 - Pages: 6

Free Essay

Advanced Technologies

...Name: John Smith Date: 11/13/12 Case Name: Advanced Technologies, Inc. Section I: Advanced Technologies, Inc. was a leading supplier of equipment for the semiconductor industry. Headquartered in Phoenix, Arizona, ATI had plants in Arizona and California and a sales and service network of 21 offices in North America, Europe, Japan, Korea, and Asia-Pacific. In October 1997, the CEO was reviewing a five-year financing plan. Sales of semiconductor equipment soared at a 52% annual compound rate during 1993-1996, or approximately twice the growth rate during the prior seven-year period and three times the sales growth of the semiconductor industry. Equipment providers were suddenly faced with capital spending cutbacks, order cancellations, and requests by customers for extended terms. Over the long-term, demand for semiconductor equipment was expected to resume its double-digit growth. New uses were growing far beyond the computer-in communications, transportation, medical technology, automation, and a host of consumer products: pocket-size cellular phones, interactive video games, digital VCRs, laser scanners, camcorders, and high-definition TV. To be competitive, suppliers must advance complex chips from the drawing board to the printed circuit board and provide production-worthy systems that can be supported on a 24 hour, worldwide basis. Section II As an external consultant, I recommend selling another convertible subordinated debenture with the coupon interest......

Words: 326 - Pages: 2

Premium Essay

Advanced Language

... Advanced Language Practice with key Michael Vince with Peter Sunderland English Grammar and Vocabulary MACMILLAN Macmillan Education Between Towns Road, Oxford OX4 3PP A division of Macmillan Publishers Limited Companies and representatives throughout the world ISBN 1 405 00762 1 with key ISBN 1 405 00761 3 without key Text © Michael Vince 2003 Design and illustration © Macmillan Publishers Limited 2003 First published 1994 This edition published 2003 All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, transmitted in any form, or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publishers. Designed by Mike Brain Graphic Design Limited Layout and composition by Newton Harris Design Partnership Cover design by Oliver Design Illustrated by: Ed McLachlan pp 109; Julian Mosedale pp 12, 39, 110, 123, 153, 176, 195, 217, 225, 257; David Parkins pp 3, 42, 73; Martin Shovel pp 10, 16, 56, 70, 117, 147, 235, 285; Bill Stott pp 122; Kingsley Wiggin pp 24, 27, 57, 191, 220. Photographs by: Eyewire, Photodisc and Andrew Oliver. The author would like to thank the many schools and teachers who have commented on these materials. Also special thanks to Peter Sunderland and Sarah Curtis. Printed and bound in Italy by G. Canale and C. S.p. A Borgaro T.se, Turin 2007 2006 2005 2004 2003 1 09 8 7 6 5 4 3 2 1 Contents Introduction Vlll Grammar......

Words: 101407 - Pages: 406

Premium Essay

Advanced Routing

...Linux Advanced Routing & Traffic Control HOWTO Bert Hubert Netherlabs BV Gregory Maxwell Remco van Mook Martijn van Oosterhout Paul B Schroeder Jasper Spaans Revision History Revision 1.1 DocBook Edition 2002−07−22 A very hands−on approach to iproute2, traffic shaping and a bit of netfilter. Linux Advanced Routing & Traffic Control HOWTO Table of Contents Chapter 1. Dedication.........................................................................................................................................1 Chapter 2. Introduction ......................................................................................................................................2 2.1. Disclaimer & License.......................................................................................................................2 2.2. Prior knowledge................................................................................................................................2 2.3. What Linux can do for you...............................................................................................................3 2.4. Housekeeping notes..........................................................................................................................3 2.5. Access, CVS & submitting updates..................................................................................................3 2.6. Mailing list..............................................

Words: 28706 - Pages: 115

Free Essay

Advanced Directives

...Part I:Describe the three advance directives available for patients. When are they appropriate? How is an advanced directive put into place? Part II:What is a "Patient's Bill of Rights"? After reading “A Patient's Bill of Rights” on p. 101 of your text, describe what responsibilities physicians and other healthcare providers have in reporting suspected abuse. Should physicians have the right to select the patients they wish to treat? Why or why not? In one to two paragraphs, summarize the laws. 2.  Share your opinion of whether or not it would ever be ethical to override an advance directive.  Be sure to consider advance directives laws and The Patient Bill of Rights. The advanced directives law in Ohio includes the Living Will, Power of Attorney, and a DNR order. A living will is a document expressing the wishes of the owner in the case that they cannot make decisions for themselves. It decides medical decisions involving certain medical treatment and surgeries related to the patient. A power of attorney is the reliable person that the patient would chose to make their medical decisions in the case that they were medically unable to. This would only come into play if the patient is ill and cannot make medical decisions on their own. Otherwise the patient would still make their own decisions. A DNR order, do not resuscitate, is used when a patient wishes to not be resuscitated in the event that it is needed. This order must be signed by two witnesses and a physician......

Words: 372 - Pages: 2

Premium Essay

Advanced Accounting

...element in deciding which accounting method to use. If few intercompany sales are made, monitoring the subsidiary through the application of the equity method is less essential. Conversely, if the amount of these transactions IS significant, the added data can be helpful to company administrators evaluating operations. Sophistication of accounting systems. If Pilgrim and Crestwood both have advanced accounting systems, application of the equity method may be relatively simple. Unfortunately, if these systems are primitive, the cost and effort necessary to apply the equity method may outweigh any potential benefits. The timeliness and accuracy of income figures generated by Crestwood. If the subsidiary reports operating results on a regular basis (such as weekly or monthly) and these figures prove to be reliable, equity totals recorded by Pilgrim may serve as valuable information to the parent. However, if Crestwood's reports are slow and often require later adjustment, Pilgrim's use of the equity method will provide only questionable results. McGraw-Hill/Irwin Hoyle, Schaefer, Doupnik, Advanced Accounting, 9/e © The McGraw-Hill Companies, Inc., 2009 3-1 Answers to Questions 1. a. CCES Corp., for its own recordkeeping, may apply the equity method to the investment in Schmaling. Under this approach, the parent's records parallel the activities of the subsidiary. Income will be accrued by the parent as it is earned by the subsidiary. Dividends paid by Schmaling cause a......

Words: 16464 - Pages: 66

Premium Essay

Advanced English

...Advanced English ‘Homecoming’ was written in 1968. This was at the height of the Vietnam War when the tide was turning and the anti-war movement was gaining momentum. In his poem, Dawe depicts the harsh realities of war. One of the main ideas explored in the poem is the senseless waste of human life during the war. Dawe uses many techniques to convey his message. “All day, day after day”, the repetition emphasises the futility and senselessness and creates an image of a continuous flow of bodies; it implies that the war is never ending. This is not unique to the Vietnam War, and many still face these realities in war, this means the audience connects to and feels empathy for the situation, as it still exists today. Loss of hope is another prominent idea in the poem; the imagery in “telegrams tremble like leaves from a wintering tree” forces the reader to imagine the leaves, fragile and dying. Personification likens these leaves to the telegrams being opened. This idea is further shown in the last line “they’re bringing them home, now, too late, too early”, the paradox in the line expresses almost bitterness, a loss of hope and futility. It evokes strong emotions from the reader. The effects of war on the environment and communities can be seen in “the steaming chow mein”, in which Dawe uses a common Vietnamese food to express the destruction of the landscape. They all felt for the soldiers and respected their efforts, even the dogs who “raised muzzles in mute......

Words: 300 - Pages: 2

Free Essay

Advanced Technology

...such as follows: * The battery life of a 2G handset lasts longer, due to the lower-powered radio signals. * 2G offers additional services such as SMS and e-mail through digital signals * Its lower power emissions also made 2G handsets safer for consumers to use. * Error checking, a feature allowed by digital voice encoding, improved sound quality by reducing dynamic and lowering the noise floor. 3G Technology 3G refers to the third generation of developments in wireless technology, especially mobile communications. 3G is generally considered applicable mainly to mobile wireless; it is also relevant to fixed wireless and portable wireless. 3G networks enable network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency. Services include wide-area wireless voice telephony, video calls, and broadband wireless data, all in a mobile environment. System Capacity 3G technology provides you with the data transmission speed of up to 2Mbps when you are using the phone in stationary mode. It also provides high degree of connectivity and increased networking and most importantly the resistance to noise. The technology has in fact increased the bit rate thus enabling the service providers to provide high speed internet facilities, increased call volumes and host of the multimedia applications to their customers. In fact, the capability to support circuit and packet......

Words: 919 - Pages: 4

Premium Essay

Advanced Questions

...Advanced Questions for Horniman Horticulture 3. In what strategic direction does Bob Brown appear to be moving? Horniman Horticulture (Horniman) revenue growth is increasing since 2003 it showing a rapid growth then the industry benchmark, which is decreasing by 1.8% per year. In 2004 and 2005 Horniman is constantly growing with increase in the revenue from 2.4% in 2003 to 12.5% in 2005 and 15.5% in 2005 as well as increase in total asset net profit and return on equity respectively, which indicate that it’s doing well within the industry. As we can see in exhibit 1 They have stabilized depreciation as its only rose 20% from 2003 to 2005 (38.4 to 40.9) . The same goes for tax expanse it hasn’t change much by staying around 34 to 34%. One of the Key strength of Bob Brown in regard to management is that he has a good relationship with the employee and customer. 4. Support your answer to question 3 by indicating what change in the allocation of resources the Browns need to make in order to support this strategy. Increasing the payable days or lowering the day’s receivable outstanding would reduce the cash conversion cycle. Although it is important to invest cash back into the company for growth, a more conservative approach of holding on to more cash would benefit Horniman in the future. 7. What is going right with this business? - Profitability Ratios: Constant growth from 2002-05, particularly year 2004 and 2005 with impressive growth in revenue with12.5% and 15.5%......

Words: 589 - Pages: 3

Premium Essay

Advanced Degree

...Advanced Degreed Nurses Improve Patient Safety ADVANCED DEGREED NURSES IMPROVE PATIENT SAFETY Nurses have an obligation to patients and to patients’ families to deliver competent and safe quality of care. The American Association of Colleges of Nursing stated “education has a significant impact on the knowledge and competencies of the nurse clinician.” (Fact sheet AACN). My choice to return to school is a direct reflection on my commitment to give the absolute best care possible. In my nursing career I have been privileged to work as both a floor nurse and a management nurse each requiring their own level of nursing and understanding of all aspects of patient quality. As nurses’ duties increase in difficulty and diversity, so must our knowledge base. The Tricouncil for nursing issued a “calling all RN/s to advance their education in the interest of enhancing quality and safety across the settings.”(May 2010). Advanced level nurses not only give excellent patient care increasing safety, but also serve as mentors and role model to new graduate nurses and ancillary nursing staff. This increases patient safety, allow the new nurses to grow in a positive learning environment and results in overall improved quality of care. Throughout the past two years I have worked as a pool nurse going to the various hospital departments improving my clinical skill and adding to by core of nursing knowledge. In that time I have met and worked with several of the advanced level......

Words: 364 - Pages: 2

Premium Essay

Advanced Hrm

...satellite-based distribution system, and by keeping store location costs to a minimum by placing stores on low-cost land outside small to medium-sized towns, no matter in the US or in its abroad affiliations. Since, Walmart Company is obviously taking the cost leadership strategy, it uses the efficient stock control system and imports many goods from China for low cost which helps to make its operating costs lower. So the company-level strategy of Walmart is low cost and low cost, with little differentiation strategy To support its corporate strategy, HR strategies are also carried out in a low cost manner. For that Walmart follows somewhat aggressive HR policy and practices to reduce costs. From recruitment and selection to advanced HR practices this aggressiveness can clearly be seen which the company believes that it’s the ‘best fit’ for their corporate strategy. Since the business field is highly competitive nowadays with the globalization, HR people should out huge amount of thinking power to retain employees under this aggressive HR policies and practices. In this case study, the strategic human resource solutions will be evaluated by answering the given questions. 1 1.1 Briefly explain what you understand by business strategy? It’s the principles guiding how a business uses its resources to achieve its goals. A strategy states a business's focus and indicates the basic steps the business will use to achieve it. The ultimate aim of any......

Words: 1801 - Pages: 8

Free Essay

Advanced Directives

...Advanced Directives Death is in a sense inevitable, we can’t escape from it. In today’s day in age, we are living longer than our parents and our grandparents due to medical technology. But there are so many ethical issues and complications that go hand and hand with death. There are two forms of death, cardiac and brain-oriented. Determining these two forms of death, along with the determined time of death is vital, simply because we don’t want to treat a living person as if they were dead. With so many issues concerning death, we have to protect those who are on the brink of death or terminally ill and can’t speak for themselves, but allowing them to make preparations for the future. Advanced directives makes this possible, defined as legal documents that allow you to convey your decisions about end-of-life care ahead of time. “They provide a way for you to communicate your wishes to family, friends and health care professionals, and to avoid confusion later on.” (http://www.nlm.nih.gov/medlineplus/advancedirectives.html) Given the difficulties that come with making end-of-life decisions, many find those decisions to be unethical or even lawful in a sense. The choices that are made in some cases won’t please everyone and that includes family and close friends or even outsiders who are openly against making these types of choices. A living will can be used in the situation that an individual isn’t able to make life ending decisions on their own, providing a way......

Words: 1000 - Pages: 4

Free Essay

Advanced Database

...CS 632 Advanced Database Systems Your Name: Yagna Patel Your NJIT UCID: 31327569 Email the COMPLETED form back to me at wangj@njit.edu before 9 PM, Sunday, July 26, 2015. The subject of your email must be CS 632 Exam Time. Students who do not send me the COMPLETED form before 9 PM, Sunday, July 26, 2015 are assumed to be OK with ALL the time slots listed below. If a particular time slot is not checked, it is assumed that the time slot is OK (i.e. the default value for each time slot is OK). The finalized exam time will be posted on Moodle before 9 PM, Sunday, August 2, 2015. The total time (duration) for the exam will be 1 hour. August 4, Tuesday, 6 PM Preferred OK Low priority August 4, Tuesday, 8 PM Preferred OK Low priority August 5, Wednesday, 6 PM Preferred OK Low priority August 5, Wednesday, 8 PM Preferred OK Low priority August 6, Thursday, 6 PM Preferred OK Low priority August 6, Thursday, 8 PM Preferred OK Low priority August 7, Friday, 6 PM Preferred OK Low priority August 7, Friday, 8 PM Preferred OK Low priority August 8, Saturday, 3 PM X X Preferred OK Low priority August 8, Saturday, 6 PM ......

Words: 298 - Pages: 2