We have been asked by the directors of Belamy Corporation (BC), a company owned by Lipopro Inc (LI) which produces patented medicines, to give advice as to the potential financial reporting implications of the various alternatives for acquiring Caligon Inc (CI). CI is a wholly owned pharmaceutical subsidiary of Davison Corporation (DC), which has recently been de-emphasizing its own research efforts in favor of licensing products from other companies. BC is looking to acquire a pharmaceutical company
Words: 1150 - Pages: 5
--Future value of annuity due = (1+r) * P(((1+r)^n - 1)/r) --Bonds: Dr. Cash, Cr. Discount, Cr. Bonds Payable (par value) First entry for first payment of interest: Dr. Interest Expense, Cr. Cash, Cr. Discount on bonds payable --Cash: coin, currency, available funds on deposit at bank, money order, certified checks, cashier’s checks, personal checks, bank drafts, and saving accounts. Inclunding Cash equivalents: T-bill, commercial paper, money mkt funds. Restricted: plant expansion, retirement
Words: 2179 - Pages: 9
Dividends declared of $25,000 * Year 2011 Net Income of $110,000; Dividends declared of $35,000 Prepare a consolidated worksheet for the year ended December 31, 2012. Although no goodwill impairment was reflected at the end of 2010 or 2011, the goodwill impairment test conducted at December 31, 2012 revealed implied goodwill from Salem to be only $150,000. This impairment was been recorded in the books of the parent under the equity method. December 31, 2012 Consolidation Worksheet Income Statement
Words: 742 - Pages: 3
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
Words: 8025 - Pages: 33
Table of Contents 1. Introduction 2. A Young Company’s CSR Motives 3. The Potential for Backfire 4. CSR Development: The Three Phases 5. A Mature Company’s CSR Motives 6. Vice Industries CRS Initiatives 7. Other Schools of Thought 8. Conclusion 1. Introduction Scholars explain the surprising fact that companies in the United States alone spend $9 billion annually on philanthropic causes by investigating the motives behind such apparent generosity (e.g
Words: 3514 - Pages: 15
2. Analytical check of Investment in A $ Investor’s share of book value of A $340,000 x 30% NCI’s share of FV adjustment on intangible assets (after-tax) ($40,000 x 50% x 80%) x 30% Investor’s share of Implicit goodwill (Note) NCI balance as at 31 December 20X5 Note: Implicit goodwill in investment in A: $ Investment in A BV of net assets of A at acquisition Unrecognized intangible (after-tax) FV of net assets of A at acquisition Less: Share of FV of net assets of A at acquisition Total Investment
Words: 4886 - Pages: 20
Conceptual Framework A conceptual framework establishes the concepts that underlie financial reporting. Conceptual framework includes objectives, qualitative characteristics, elements, measurement, and recognition concepts. The FASB Concepts Statements guide the board in developing accounting principles and provide understanding. These concept statements are non-authoritative and do not establish generally accepted accounting principles. Entities do not use the FASB Concept Statements in routine
Words: 3445 - Pages: 14
Dollar Tree Financial Statement Analysis DeVry University 8/19/12 Table of Content Introduction-------------------------------------------------------------------------------------------------------------------3 Question 1--------------------------------------------------------------------------------------------------------------------3 Question 2--------------------------------------------------------------------------------------------------------------------4 Question 3----------
Words: 3622 - Pages: 15
Snyder’s-Lance is a snack manufacturing company that has recently acquired new companies to grow their brand of product. They produce pretzels, chips, crackers and a wide variety of other snacks. Snyder’s Lance auditing firm is KPMG LLP independent auditing firm. They provide a clean opinion on the financial statements. They are objective supporting their findings with evidence. The company grew over 50% from 2011. During 2012 Snyder’s-Lance acquired Snack Factory LLC for $343.4 million
Words: 1735 - Pages: 7
TEST TWO GROUP ACCOUNTING AND REPORTING ONE HOUR THIRTY MINUTES QUESTION 1 The draft statements of comprehensive income and statements of changes in equity of Lisa Bhd, Marie Bhd and Presley Bhd for the year ended 31 December 2011 are given below: Statements of Comprehensive Income for the year ended 31 December 2011 | |Lisa Bhd | |Marie Bhd | |Presley Bhd | |
Words: 481 - Pages: 2
