CHAPTER 4 CONSOLIDATION OF WHOLLY OWNED SUBSIDIARIES ACQUIRED AT MORE THAN BOOK VALUE ANSWERS TO QUESTIONS Q4-1 The carrying value of the investment is reduced under equity method reporting when (a) a dividend is received from the investee, (b) a differential is amortized, (c) an impairment of goodwill occurs, and (d) the market value of the investment declines and is less than the carrying value and it is concluded the decline is other than temporary. Q4-2 A differential occurs when
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e. $40,000 has been realised via Stopple's depreciation charge, giving a net adjustment of $360,000 to both Hanford's profits (W5) and the carrying value of the plant. (W2) Net assets in subsidiary At acquisition $000 8,000 2,000 10,000 4,000 –––––– 24,000 –––––– At reporting date $000 8,000 2,000 14,000 4,000 (200) –––––– 27,800 –––––– Share capital Share premium Retained earnings (6,000 + 4,000) Fair value adjustment Administration charges Fair value adjustments The insuran
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Investments in Marketable Equity and Debt Securities (SFAS #115, for fiscal years beginning after 12/5/1993) |Reporting Category |Classification Criteria | |Held to Maturity |Debt securities the investor has the positive intent and ability to hold to maturity | |Trading Securities |
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page Increase font Alliances Catalyst for Innovation Community Involvement Corporate Responsibility Deloitte’s sponsorship of the U.S. Olympic Committee Inclusion Deloitte University Ethics & Independence Deloitte Life Growth Through Acquisition History Investor Confidence Leadership University Relations Deloitte Foundation Faculty Resources Faculty and Ph.D. Support Life, Inc. Student Events The Trueblood Case Studies DOWNLOAD For a complete index of Cases and Addendum
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chapter The Equity Method of Accounting for Investments The first several chapters of this text present the accounting and reporting for investment activities of businesses. The focus is on investments when one firm possesses either significant influence or control over another through ownership of voting shares. When one firm owns enough voting shares to be able to affect the decisions of another, accounting for the investment can become challenging and complex. The source of such complexities
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No. 2014-17 November 2014 Business Combinations (Topic 805) Pushdown Accounting a consensus of the FASB Emerging Issues Task Force An Amendment of the FASB Accounting Standards Codification® The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. An Accounting Standards Update is not authoritative; rather, it is a document that communicates how the Accounting
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IFRS The Changeover A Guide for Users of Financial Reports A Canadian Performance Reporting Board Publication IFRS The Changeover A Guide for Users of Financial Reports A Canadian Performance Reporting Board Publication The IFRS Changeover — A Guide for Users of Financial Reports Copyright © 2010 The Canadian Institute of Chartered Accountants 277 Wellington Street West Toronto ON M5V 3H2 www.cica.ca ISBN 978-1-55385-512-5 Printed in Canada Disponible en français
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interpretation of SFAS 109 Performance reporting Share based payment (SFAS 123R) 3. Joint IASB-FASB project on business combinations Intent => replace SFAS 141 and converge with international standards Will include mutual enterprises Will include acquisitions of businesses through means other than a purchase of net assets or equity interests A separate project is addressing business combinations involving not-for-profit organizations General principle: recognize assets acquired and liabilities assumed
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benefits to an enterprise for a number of future periods. Accounting standards regarding long-lived assets involve determination of the appropriate cost at which to record the assets initially, the amount at which to present the assets at subsequent reporting dates, and the appropriate method(s) to be used to allocate the cost or other recorded values over the periods being benefited. Under international accounting standards, while historical cost is the defined benchmark treatment, revalued amounts
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Examiner's Answers F2 - Financial Management March 2014 Some of the answers that follow are fuller and more comprehensive than would be expected from a well-prepared candidate. They have been written in this way to aid teaching, study and revision for tutors and candidates alike. SECTION A Question One Rationale This question was intended to test two of the key areas in Syllabus Section B, being share-based payments and retirement benefits. The share-based part requires knowledge and
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