On 1 July 2008 Cortina Ltd acquired all the issued shares of Turin Ltd for $200 000. At acquisition date the recorded equity of Turin Ltd was: $ Share capital 150 000 Plant Maintenance Reserve 30 000 Retained earnings 87 500 At this date all identifiable net assets of Turin Ltd were recorded at fair value except for: Carrying Amount Fair Value $ $ Inventory 39 000 51 000 Machinery (cost $250 000) 195 000 210 000 On 12 March 2008, a lawsuit claiming damages of $50 000 was
Words: 350 - Pages: 2
of IFRS by U.S. issuers in their filings with the Commission (Navigating). The transition from U.S. GAAP to IFRS reporting will have a huge impact for investors and businesses in the U.S. Although only a roadmap was issued and no conversion dates were announced, it is speculated that IFRS reporting will more than likely become mandatory (Navigating). This article will present an overview on some of the most
Words: 1382 - Pages: 6
ACCT 8530, ADVANCED ACCOUNTING PROBLEMS Fall 2015 Section 003, 12:30-2:00 PM, Tuesday and Thursday, Greenville ONE Room 603 Suzanne Pearse, CPA. Office: 836 Greenville ONE Office Hours: 9:30-11:00 AM, Tuesday and Thursday and by appointment Office Phone: 864 656-0131 Email: spearse@clemson.edu Required Materials: Text: Hoyle, J. B., Schaefer, T. F, and Doupnik, T. S. Advanced Accounting, 12th ed. (custom
Words: 1835 - Pages: 8
Date: April 12, 2010 To: James Bluff From: Boat Cai Subject: key disclosure issues for financial statements [pic] Dear Mr. Bluff As requested, I’ve done a further research on the four items arisen and found out the disclosure requirements for each of them including errors correction, events after reporting date, recognition criteria of provision and classification of financial instruments. I also went through the financial statements and found out some omissions. Finally, due to changes in
Words: 1481 - Pages: 6
|Realized loss on | |not control of the corporation |share of earnings since | |IS, new basis on | | |acquisition less dividends | |BS | |Use Equity Method |received (amortization may also be| | | |
Words: 1180 - Pages: 5
___________________________________________________________________________ On July 1, 20X9, Link Corporation paid $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
Words: 3367 - Pages: 14
1, 2011, Pacer Company paid $1,920,000 for 60,000 shares of Lennon Co.’s voting common stock which represents a 45% investment. No allocation to goodwill or other specific account was made. Significant influence over Lennon was achieved by this acquisition. Lennon distributed a dividend of $2.50 per share during 2011 and reported net income of $670,000. What was the balance in the Investment in Lennon Co. account found in the financial records of Pacer as of December 31, 2011? A. $2,040,500. B.
Words: 2072 - Pages: 9
Chapter 8 CONSOLIDATIONS — CHANGES IN OWNERSHIP INTERESTS Answers to Questions 1 Preacquisition earnings and dividends are the earnings and dividends applicable to an investment interest prior to its acquisition during an accounting period. Assume that P purchases an 80 percent interest in S on July 1, 2011 and that S has earnings of $100,000 between January 1 and July 1, 2011 and pays $50,000 dividends on May 1, 2011. In this case, preacquisition earnings and dividends are $100,000 and $40,000
Words: 8458 - Pages: 34
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
Words: 32518 - Pages: 131
TUTORIAL 2 CONSOLIDATION SUBSEQUENT TO THE DATE OF ACQUISITION SUBMISSION DATE: QUESTION 1 On 1 January 2009, Biru Bhd acquired a 75% interest in the equity capital of Merah Bhd for a cash consideration of RM10 million. On this date, the net assets of Merah Bhd were stated in the accounts at fair value and the balance in the retained earnings was RM2 million. The remaining 25% of non-controlling interest was measured at fair value for RM4 million. The company uses fair value method to
Words: 2087 - Pages: 9
