23 Consolidation: controlled entities ACCOUNTING STANDARDS IN FOCUS LEARNING OBJECTIVES IFRS 10 Consolidated Financial Statements After studying this chapter, you should be able to: 1 explain the meaning of consolidated financial statements 2 discuss the meaning and application of the criterion of control 3 discuss which entities should prepare consolidated financial statements 4 understand the relationship between a parent and an acquirer in a business combination 5 explain the
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Guidelines and Grading Guide Consolidation Model Click below link for Answer visit www.workbank247.com http://workbank247.com/q/acc-690-final-project-guidelines-and-grading-guide/11908 http://workbank247.com/q/acc-690-final-project-guidelines-and-grading-guide/11908 ACC 690: Final Project Guidelines and Grading Guide: Consolidation Model Overview The final project for this course is the creation of an Excel spreadsheet model that shows the consolidation worksheet, intercompany elimination
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Consolidation work and financial statements subsequent to acquisition Background and Information Palus Corporation acquired 90 percent of Stalus Company’s voting stock on January 1, 2010. The price paid was $145,000. The excess of costs over book value was $10,000, which should be attributed to goodwill and must be amortized over 10 years. The fair value of the non-controlling (minority) interest was equal to 10 percent of the book value of Stalus at that date. Palus uses the equity method
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OL 501 Final Project worksheet Worksheet C Instructed by Dr. Alan Aylor Christian Martino Question and Answer Sheet Southern New Hampshire University 02/25/2017 ____________________________________________________________________________ 1. How can management information, such as financial statements, help management and investors make more informed decisions? Are there any risks associated with the compilation and analysis of information, for example, accuracy or relevance
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$340,000 for all of Tinsel Company's outstanding common stock. On that date, the costs and fair values of Tinsel's recorded assets and liabilities were as follows: 1. Based on the preceding information, the differential reflected in a consolidation worksheet to prepare a consolidated balance sheet immediately after the business combination is: A. $0. B. $25,000. C. $70,000. D. $45,000. Based on the preceding information, what amount should be allocated to goodwill in the consolidated balance sheet
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Possible Problem/Essay Topics Chapter 1 1) Determining amount of goodwill during an acquisition (problem that includes Figure 1-3 on page 19) * Components used in determining goodwill: * The fair value of the consideration given by the acquirer * The fair value of any interest in the acquiree already held by the acquirer * The fair value of the noncontrolling interest in the acquiree, if any * The total of these three amounts, all measured at the acquisition date
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03 Chapter - Consolidations--Subsequent to the Date of Acquisition 1 Answers to Discussion Questions How Does a Company Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary, Crestwood Corporation. The following is simply a partial list of possible points to consider. Use of the information. If Pilgrim does not monitor its own income levels
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interest = $200,000 Aggregate investment = $600,000 + $200,000 - $32,000 (dividend receivable) = $768,000 Goodwill = $768,000 - $668,000 = $100,000 Recorded goodwill = $40,000 Unrecorded goodwill = $60,000 b) Consolidation worksheet entries at 1 July 2010 Business combination valuation entries 1) Inventory 10,000 Deferred tax liability 3,000 Business combination valuation reserve 7,000 2) Land 8,000 Deferred tax liability
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McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2009 Hoyle, Schaefer, Doupnik, Advanced Accounting, 9/e 3-1 CHAPTER 3 CONSOLIDATIONS—SUBSEQUENT TO THE DATE OF ACQUISITION Answers to Discussion Questions How Does a Company Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary, Crestwood Corporation. The following is simply a partial
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CHAPTER 3 CONSOLIDATIONS—SUBSEQUENT TO THE DATE OF ACQUISITION Answers to Discussion Questions How Does a Company Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary, Crestwood Corporation. The following is simply a partial list of possible points to consider. Use of the information. If Pilgrim does not monitor its own income levels closely
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