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Noncontrolling Interest
If the parent doesnt own 100% of the company, WHO owns the rest of it?
Noncontrolling (Minority) Shareholder The ownership interests of the Noncontrolling Shareholders must be reflected in the consolidated financial statements.
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Noncontrolling Interest
The Parent has control and is responsible for all of the Subsidiarys assets and liabilities, so we will still consolidate 100% of the Subsidiarys financial information. However
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Add Entry *C to convert from the Partial Equity Method to the Equity Method, but only the adjustment for the parents share of amortization expense is necessary.
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Mid-Year Acquisitions
When control of a Sub is acquired at a time subsequent to the beginning of the subs fiscal year:
The income statements are
consolidated as usual, and The Subs pre-acquisition revenues and expenses are excluded from the Parents consolidated statements (adjusted via Entry S), and Only a partial years amortization on excess fair value is taken.
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Step Acquisitions
When a Parent acquires a Subsidiary over time, or in steps, the date control is achieved is significant All previous values for the investment, prior to the date control is obtained, are remeasured to fair value as of the date of control.
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vs
IFRS
IFRS permits fair value measurement, or the noncontrolling interest may be measured at a proportionate share of the Subs identifiable net asset fair value, which excludes goodwill. This option assumes that any goodwill created via acquisition applies solely to the controlling interest.
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