Professional Documents
Culture Documents
Consolidated Financial
Statements After Acquisition
Learning
Learning Objectives
Objectives
Slide
4-2
1.
Describe the accounting treatment required under current GAAP for varying levels of
influence or control by investors.
2.
Prepare journal entries on the parents books to account for an investment using the
cost method, the partial equity method, and the complete equity method.
3.
4.
Prepare a schedule for the computation and allocation of the difference between
implied and book values.
5.
Prepare the workpaper eliminating entries for the year of acquisition (and subsequent
years) for the cost and equity methods.
6.
7.
Explain how the consolidated statement of cash flows differs from a single firms
statement of cash flows.
8.
9.
Describe some of the differences between U.S. GAAP and IFRS in accounting for
equity investments.
Investments
Investments in
in Stock
Stock
Investments in voting stock may be consolidated, or
separately reported at
cost,
fair value, or
equity.
Slide
4-3
Accounting
Accounting for
for Investments
Investments by
by the
the Cost,
Cost,
Partial
Partial Equity,
Equity, and
and Complete
Complete Equity
Equity Methods
Methods
Ownership Percentages
Slide
4-4
No significant
influence
Significant
influence
(no control)
Effective
control
Investment
valued using
the cost
method but
with
adjustments
to fair value.
Investment
valued using
Equity
Method
Investment
valued using Cost
Method or Equity
Method
(investment
eliminated in
Consolidation)
Accounting
Accounting for
for Investments
Investments by
by the
the Cost,
Cost,
Partial
Partial Equity,
Equity, and
and Complete
Complete Equity
Equity Methods
Methods
Consolidated financial statements will be identical,
regardless of method used.
However, if the parent issues parent-only financial
statements, the complete equity method should be
used for investees over which the parent has either
significant influence or effective control.
Slide
4-5
Accounting
Accounting for
for Investments
Investments by
by the
the Cost
Cost Method
Method
E4-1: Percy Company purchased 80% of the outstanding
voting shares of Song Company at the beginning of 2009 for
$387,000. At the time of purchase, Song Companys total
stockholders equity amounted to $475,000. Income and
dividend distributions for Song Company from 2009 through
2010 are as follows:
Accounting
Accounting for
for Investments
Investments by
by the
the Cost
Cost Method
Method
E4-1: A. Percy Company uses the cost method to record its
investment.
2009
Investment in Song
387,000
Cash
387,000
Cash
20,000
Slide
4-7
20,000
Accounting
Accounting for
for Investments
Investments by
by the
the Cost
Cost Method
Method
E4-1: A. Percy Company uses the cost method to record its
investment.
2010
Cash
40,000
Cash
40,000
28,000
28,000
(Liquidating dividend)
Slide
4-8
Accounting
Accounting for
for Investments
Investments by
by Partial
Partial Equity
Equity
E4-1: B. Percy Company uses the partial equity method to
record its investment.
2009
Investment in Song
387,000
Cash
387,000
Investment in Song
50,800
50,800
20,000
20,000
Accounting
Accounting for
for Investments
Investments by
by Partial
Partial Equity
Equity
E4-1: B. Percy Company uses the partial equity method to
record its investment.
2010
Investment in Song
42,000
42,000
40,000
Slide
4-10
40,000
Accounting
Accounting for
for Investments
Investments by
by Partial
Partial Equity
Equity
E4-1: B. Percy Company uses the partial equity method to
record its investment.
2011
44,000
Investment in Song
Cash
44,000
28,000
Slide
4-11
28,000
Accounting
Accounting for
for Investments
Investments by
by Complete
Complete Equity
Equity
E4-1: C. Percy Company uses the complete equity method
to record its investment. The difference between book value
of equity acquired and the value implied by the purchase price
was attributed solely to an excess of market over book values
of depreciable assets, with a remaining life of 10 years.
Accounting
Accounting for
for Investments
Investments by
by Complete
Complete Equity
Equity
E4-1: C. Percy Company uses the complete equity method
to record its investment.
2009
Investment in Song
387,000
Cash
Investment in Song
387,000
50,800
50,800
20,000
20,000
Accounting
Accounting for
for Investments
Investments by
by Complete
Complete Equity
Equity
E4-1: C. Percy Company uses the complete equity method
to record its investment.
A journal entry is required to adjust for depreciation related
to the excess of market over book values of depreciable
assets.
Cost of investment
Book value acquired ($475,000 x 80%)
Difference between Cost and Book value
2009
Slide
4-14
$387,000
380,000
$ 7,000
700
700
Accounting
Accounting for
for Investments
Investments by
by Complete
Complete Equity
Equity
E4-1: C. Percy Company uses the complete equity method
to record its investment.
2010
Investment in Song
42,000
42,000
40,000
40,000
700
700
Accounting
Accounting for
for Investments
Investments by
by Complete
Complete Equity
Equity
E4-1: C. Percy Company uses the complete equity method
to record its investment.
2011
44,000
Investment in Song
Cash
44,000
28,000
28,000
700
700
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
On the date of acquisition, the only relevant financial
statement is the consolidated balance sheet.
After acquisition, a complete set of consolidated financial
statements must be prepared for the affiliated group:
Slide
4-17
Income statement,
LO 3 Use of workpapers.
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
Year of AcquisitionCost Method
P4-8: On January 1, 2010, Parker Company purchased 95% of the
outstanding common stock of Sid Company for $160,000. At that
time, Sids stockholders equity consisted of common stock,
$120,000; other contributed capital, $10,000; and retained
earnings, $23,000.
Required:
A. Prepare a consolidated statements workpaper on Dec. 31, 2010.
B. Prepare a consolidated statements workpaper on Dec. 31, 2011.
Slide
4-18
LO 3 Use of workpapers.
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
P4-8: Begin the consolidating process by preparing a Computation
and Allocation Schedule, as follows:
95%
5%
100%
Parent
Share
$ 160,000
NCI
Share
$
8,421
Total
Value
$ 168,421
114,000
9,500
21,850
145,350
6,000
500
1,150
7,650
120,000
10,000
23,000
153,000
14,650
(14,650)
-
771
(771)
-
15,421
(15,421)
-
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
P4-8: A. 2010
Year of Acquisition
Slide
4-20
Cash
Accounts receivable
Inventory
Investment in Sid
Plant and equipment
Land
Dividends declared
Cost of goods sold
Operating expenses
Total debits
Accounts payable
Other liabilities
Common stock
Other contributed capital
Retained earnings
Sales
Dividend income
Total credits
Parker
$ 62,000
32,000
30,000
160,000
105,000
29,000
20,000
130,000
20,000
$ 588,000
Sid
$ 30,000
29,000
16,000
82,000
34,000
20,000
40,000
14,000
$ 265,000
19,000
10,000
180,000
60,000
40,000
260,000
19,000
$ 588,000
12,000
20,000
120,000
10,000
23,000
80,000
$ 265,000
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
P4-8: A. 2010
Slide
4-21
Year of Acquisition
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
P4-8: A. 2010
Balance Sheet
Cash
Accounts receivable
Inventory
Investment in Sid
Difference (cost & book)
Plant and equipment
Land
Goodwill
Total assets
Year of Acquisition
Parker
$ 62,000
32,000
30,000
160,000
15,421
105,000
29,000
NCI
160,000
15,421
82,000
34,000
15,421
$ 418,000
Accounts payable
$
Other liabilities
Common stock
Other contributed capital
Retained earnings
Noncontrolling interest 1/1
Noncontrolling interest 12/31
Total liabilities & equity $
Slide
4-22
Sid
$ 30,000
29,000
16,000
-
Eliminations
Debit
Credit
19,000
10,000
180,000
60,000
149,000
$ 191,000
$ 12,000
20,000
120,000
10,000
29,000
$
120,000
10,000
42,000
19,000
8,421
$
418,000
$ 191,000
Consolidated
Balances
$
92,000
61,000
46,000
187,000
63,000
15,421
$
464,421
$ 202,842
$ 202,842
300
8,421
8,721
$
31,000
30,000
180,000
60,000
154,700
8,721
464,421
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
Workpaper Observations
1.
2.
120,000
10,000
23,000
15,421
8,421
160,000
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
Workpaper Observations (continued)
3.
15,421
19,000
Slide
4-24
15,421
19,000
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
Workpaper Observations (continued)
5.
Slide
4-25
$26,000
5%
$ 1,300
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
Workpaper Observations (continued)
6.
129,000
- 19,000
Slide
4-26
$ 40,000
24,700
- 20,000
$154,700
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
Workpaper Observations (continued)
7.
8.
Slide
4-27
8,421
1,300
-1,000
$ 8,721
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
After Year of Acquisition Cost Method
P4-8: B. 2011
On December 31, 2011,
the two companies trial
balances were as follows
at right:
Required B. Prepare a
consolidated statements
workpaper on December
31, 2011.
Slide
4-28
Cash
Accounts receivable
Inventory
Investment in Sid
Plant and equipment
Land
Dividends declared
Cost of goods sold
Operating expenses
Total debits
Accounts payable
Other liabilities
Common stock
Other contributed capital
Retained earnings
Sales
Dividend income
Total credits
Parker
$ 67,000
56,000
38,000
160,000
124,000
29,000
20,000
155,000
30,000
$ 679,000
Sid
$ 16,000
32,000
48,500
80,000
34,000
20,000
52,000
18,000
$ 300,500
16,000
15,000
180,000
60,000
149,000
240,000
19,000
$ 679,000
7,000
14,500
120,000
10,000
29,000
120,000
$ 300,500
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
P4-8: B. 2011
Slide
4-29
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
P4-8: B. 2011
Balance Sheet
Cash
Accounts receivable
Inventory
Investment in Sid
Difference (cost & book)
Plant and equipment
Land
Goodwill
Total assets
Sid
$ 16,000
32,000
48,500
-
124,000
29,000
80,000
34,000
5,700
15,421
NCI
165,700
15,421
15,421
$ 474,000
Accounts payable
$
Other liabilities
Common stock
Other contributed capital
Retained earnings
Noncontrolling interest 1/1
Noncontrolling interest 12/31
Total liabilities & equity $
Slide
4-30
$ 210,500
Consolidated
Balances
$
83,000
88,000
86,500
204,000
63,000
15,421
$
539,921
Parker
$ 67,000
56,000
38,000
160,000
Eliminations
Debit
Credit
16,000
15,000
180,000
60,000
203,000
474,000
7,000
14,500
120,000
10,000
59,000
$ 210,500
120,000
10,000
48,000
$ 214,542
24,700
8,721
$ 214,542
1,500
8,721
$ 10,221
$
23,000
29,500
180,000
60,000
237,200
10,221
539,921
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
Workpaper Observations
1. Before elimination of the investment account, a workpaper
Slide
4-31
.95 = $5,700
5,700
5,700
Entry to establish
Reciprocity
Consolidated
Consolidated Statements
Statements After
After Acquisition
Acquisition
Workpaper Observations
The following workpaper entries are also made:
2. Eliminate investment in Sid Company.
3. Eliminate intercompany dividends.
4. Allocate difference between cost and book value.
5. All (100%) of Sids revenues, expenses, assets, and
Slide
4-32
Recording
Recording Investments
Investments Equity
Equity Method
Method
Equity Method
Record the investment at cost and subsequently
adjust the amount each period for
the investors proportionate share of the
Recording
Recording Investments
Investments Equity
Equity Method
Method
Example: (Equity Method) On January 1, 2010,
Pennington Corporation purchased 30% of the common
shares of Edwards Company for $180,000. During the
year, Edwards earned net income of $80,000 and paid
dividends of $20,000.
Instructions
Prepare the journal entries for Pennington to record the
purchase and any additional entries related to this
investment in Edwards Company in 2010.
Slide
4-34
Recording
Recording Investments
Investments Equity
Equity Method
Method
Example: Prepare the entries for Pennington to record the
purchase and any additional entries related to this
investment in Edwards Company in 2010.
Investment in Stock
180,000
Cash
180,000
Investment in Stock
24,000
6,000
24,000
6,000
Recording
Recording Investments
Investments Equity
Equity Method
Method
Investment Carried at EquityYear of Acquisition
P4-12: On January 1, 2010, Parker Company purchased 90% of
the outstanding common stock of Sid Company for $180,000. At
that time, Sids stockholders equity consisted of common stock,
$120,000; other contributed capital, $20,000; and retained
earnings, $25,000. Assume that any difference between book
value of equity and the value implied by the purchase price is
attributable to land.
Required:
A. Prepare a consolidated statements workpaper on Dec. 31, 2010.
B. Prepare a consolidated statements workpaper on Dec. 31, 2011.
Slide
4-36
Recording
Recording Investments
Investments Equity
Equity Method
Method
P4-12: Begin the consolidating process by preparing a Computation
and Allocation Schedule, as follows:
90%
10%
100%
Parent
Share
$ 180,000
NCI
Share
$ 20,000
Total
Value
$ 200,000
108,000
18,000
22,500
148,500
12,000
2,000
2,500
16,500
120,000
20,000
25,000
165,000
31,500
(31,500)
-
3,500
(3,500)
-
35,000
(35,000)
-
Recording
Recording Investments
Investments Equity
Equity Method
Method
P4-12: A. 2010
Year of Acquisition
Cash
Accounts receivable
Inventory
Investment in Sid
Plant and equipment
Land
Dividends declared
Cost of goods sold
Operating expenses
Total debits
Accounts payable
Other liabilities
Common stock
Other contributed capital
Retained earnings
Sales
Equity in subsidiary income
Total credits
Slide
4-38
Parker
$ 65,000
40,000
25,000
184,500
110,000
48,500
20,000
150,000
35,000
$ 678,000
Sid
$ 35,000
30,000
15,000
85,000
45,000
15,000
60,000
15,000
$ 300,000
20,000
15,000
200,000
70,000
55,000
300,000
18,000
$ 678,000
15,000
25,000
120,000
20,000
25,000
95,000
$ 300,000
Recording
Recording Investments
Investments Equity
Equity Method
Method
P4-12: A. 2010
Slide
4-39
Year of Acquisition
Recording
Recording Investments
Investments Equity
Equity Method
Method
P4-12: A. 2010
Balance Sheet
Cash
Accounts receivable
Inventory
Investment in Sid
Difference (cost & book)
Plant and equipment
Land
Total assets
Year of Acquisition
Parker
$ 65,000
40,000
25,000
184,500
35,000
110,000
48,500
$ 473,000
Accounts payable
$ 20,000
Other liabilities
15,000
Common stock
200,000
Other contributed capital
70,000
Retained earnings
168,000
Noncontrolling interest 1/1
Noncontrolling interest 12/31
Total liabilities & equity $ 473,000
Slide
4-40
Sid
35,000
30,000
15,000
-
Eliminations
Debit
Credit
85,000
45,000
$ 210,000
$
15,000
25,000
120,000
20,000
30,000
NCI
4,500
180,000
35,000
35,000
$
$
120,000
20,000
43,000
13,500
20,000
$
$ 210,000
Consolidated
Balances
$
100,000
70,000
40,000
-
$ 253,000
$ 253,000
500
20,000
20,500
$
195,000
128,500
533,500
35,000
40,000
200,000
70,000
168,000
20,500
533,500
Recording
Recording Investments
Investments Equity
Equity Method
Method
Workpaper Observations
The following workpaper entries were made:
To eliminate the account equity in subsidiary income
and intercompany dividends.
To eliminate the Investment account against subsidiary
equity.
To distribute the difference between implied and book
value of equity acquired.
Slide
4-41
Recording
Recording Investments
Investments Equity
Equity Method
Method
Investment Carried at EquityAfter Year of Acquisition
P4-12: B. 2011
On December 31, 2011,
the two companies trial
balances were as follows
at right:
Required B. Prepare a
consolidated statements
workpaper on December
31, 2011.
Slide
4-42
Cash
Accounts receivable
Inventory
Investment in Sid
Plant and equipment
Land
Dividends declared
Cost of goods sold
Operating expenses
Total debits
Accounts payable
Other liabilities
Common stock
Other contributed capital
Retained earnings
Sales
Equity in subsidiary income
Total credits
Parker
$ 70,000
60,000
40,000
193,500
125,000
48,500
20,000
160,000
35,000
$ 752,000
Sid
$ 20,000
35,000
30,000
90,000
45,000
15,000
65,000
20,000
$ 320,000
16,500
15,000
200,000
70,000
168,000
260,000
22,500
$ 752,000
16,000
24,000
120,000
20,000
30,000
110,000
$ 320,000
Recording
Recording Investments
Investments Equity
Equity Method
Method
P4-12: B. 2011
Slide
4-43
Recording
Recording Investments
Investments Equity
Equity Method
Method
P4-12: B. 2011
Balance Sheet
Cash
Accounts receivable
Inventory
Investment in Sid
Difference (cost & book)
Plant and equipment
Land
Total assets
35,000
125,000
48,500
$ 537,000
Accounts payable
$
Other liabilities
Common stock
Other contributed capital
Retained earnings
Noncontrolling interest 1/1
Noncontrolling interest 12/31
Total liabilities & equity $
Slide
4-44
Sid
$ 20,000
35,000
30,000
-
Eliminations
Debit
Credit
16,500
15,000
200,000
70,000
235,500
537,000
90,000
45,000
$ 220,000
$ 16,000
24,000
120,000
20,000
40,000
$ 220,000
NCI
9,000
184,500
35,000
Consolidated
Balances
$
90,000
95,000
70,000
-
35,000
$
$
120,000
20,000
52,500
$ 262,500
13,500
20,500
$ 262,500
1,000
20,500
$ 21,500
$
215,000
128,500
598,500
32,500
39,000
200,000
70,000
235,500
21,500
598,500
Interim
Interim Acquisitions
Acquisitions of
of Subsidiary
Subsidiary Stock
Stock
Revenues and expenses of the acquired company are included
with those of the acquiring company only from the date of
acquisition forward.
Two acceptable alternatives for presenting the subsidiarys
revenue and expense items in the consolidated income
statement in the year of acquisition:
Full-year reporting alternative.
Partial-year reporting alternative.
Slide
4-45
Interim
Interim Acquisitions
Acquisitions of
of Subsidiary
Subsidiary Stock
Stock
Equity MethodFull-Year Reporting Alternative
P4-16:
Pillow Company purchased
90% of the common stock
of Satin Company on May
1, 2009, for a cash
payment of $474,000.
December 31, 2009, trial
balances for Pillow and
Satin were:
Slide
4-46
Cash
Treasury stock at cost
Investment in Satin
Plant and equipment
Cost of goods sold
Operating expenses
Dividends declares
Total debits
Accounts and notes payable
Dividends payable
Common stock
Other contributed capital
Retained earnings
Sales
Equity in subsidiary income
Total credits
Pillow
$ 390,600
510,000
1,334,000
1,261,000
484,000
$ 3,979,600
Satin
$ 179,200
32,000
562,000
584,000
242,000
60,000
$ 1,659,200
270,240
1,000,000
364,000
315,360
1,940,000
90,000
$ 3,979,600
124,000
60,000
200,000
90,000
209,200
976,000
$ 1,659,200
Interim
Interim Acquisitions
Acquisitions of
of Subsidiary
Subsidiary Stock
Stock
P4-16:
Satin Company declared a $60,000 cash dividend on December 20,
2009, payable on January 10, 2010, to stockholders of record on
December 31, 2009. Pillow Company recognized the dividend on its
declaration date. Any difference between book value and the value
implied by the purchase price relates to subsidiary land, included
in property and equipment.
Required: Prepare a consolidated statements workpaper at
December 31, 2009, assuming that Satin Company uses the fullyear reporting alternative.
Slide
4-47
Interim
Interim Acquisitions
Acquisitions of
of Subsidiary
Subsidiary Stock
Stock
P4-16: Computation and Allocation of Difference between Cost
90%
10%
100%
and Book Value Acquired:
Parent
Share
$ 474,000
Slide
4-48
NCI
Share
$ 52,667
Total
Value
$ 526,667
180,000
81,000
188,280
(28,800)
45,000
465,480
20,000
9,000
20,920
(3,200)
5,000
51,720
200,000
90,000
209,200
(32,000)
50,000
517,200
8,520
(8,520)
-
947
(947)
-
9,467
(9,467)
-
Interim
Interim Acquisitions
Acquisitions of
of Subsidiary
Subsidiary Stock
Stock
P4-16: Full-Year Reporting Alternative
Income Statement
Sales
Equity in subsidiary income
Total revenue
Cost of goods sold
Other expenses
Total cost and expense
Net income
Net income purchased
Noncontrolling interest
Net income
Pillow
$ 1,940,000
90,000
2,030,000
1,261,000
484,000
1,745,000
285,000
Satin
$ 976,000
Eliminations
Debit
Credit
90,000
976,000
584,000
242,000
826,000
150,000
45,000
285,000
$ 150,000
315,360
285,000
600,360
209,200
209,200
150,000
135,000
(60,000)
$ 299,200 $ 344,200
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NCI
$ 135,000
54,000
$ 54,000
15,000
$ 15,000
Consolidated
Balances
$
2,916,000
2,916,000
1,845,000
726,000
2,571,000
345,000
(45,000)
(15,000)
$
285,000
15,000
(6,000)
$
9,000 $
315,360
285,000
600,360
Interim
Interim Acquisitions
Acquisitions of
of Subsidiary
Subsidiary Stock
Stock
P4-16: Full-Year Reporting Alternative
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Interim
Interim Acquisitions
Acquisitions of
of Subsidiary
Subsidiary Stock
Stock
P4-17: (Data from P4-16) Partial-Year Reporting Alternative
Income Statement
Sales
Equity in subsidiary income
Total revenue
Cost of goods sold
Other expenses
Total cost and expense
Net income
Noncontrolling interest
Net income
Pillow
$ 1,940,000
90,000
2,030,000
1,261,000
484,000
1,745,000
285,000
Eliminations
Debit
Credit
Satin
$ 650,666
90,000
650,666
389,333
161,333
550,666
100,000
285,000
$ 100,000
315,360
285,000
600,360
259,200
259,200
100,000
90,000
(60,000)
$ 299,200 $ 349,200
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NCI
90,000
54,000
$ 54,000
10,000
$ 10,000
Consolidated
Balances
$
2,590,666
2,590,666
1,650,333
645,333
2,295,666
295,000
(10,000)
$
285,000
10,000
(6,000)
$ 4,000 $
315,360
285,000
600,360
Interim
Interim Acquisitions
Acquisitions of
of Subsidiary
Subsidiary Stock
Stock
P4-17: (Data from P4-16) Partial-Year Reporting Alternative
Balance Sheet
Current assets
Investment in Satin
Difference (cost & book)
Plant and equipment
Total assets
Pillow
$ 390,600
510,000
1,334,000
$ 2,234,600
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Satin
$ 179,200
562,000
$ 741,200
$ 124,000
60,000
200,000
90,000
(32,000)
299,200
$ 741,200
Eliminations
Debit
Credit
54,000
474,000
36,000
9,467
9,467
9,467
NCI
Consolidated
Balances
$
515,800
-
$
$
54,000
200,000
90,000
349,200
$ 712,134
32,000
54,000
52,667
$ 712,134
4,000
52,667
$ 56,667
$
1,905,467
2,421,267
394,240
6,000
1,000,000
364,000
600,360
56,667
2,421,267
Consolidated
Consolidated Statement
Statement of
of Cash
Cash Flows
Flows
Peculiarities:
1.
Consolidated
Consolidated Statement
Statement of
of Cash
Cash Flows
Flows
The preparation of the consolidated statement of cash
flows in the year of acquisition is complicated slightly
because the comparative balance sheets at the beginning
and end of the current year are dissimilar.
1. Any cash spent or received in the acquisition itself
should be reflected in the Investing activities
section.
2. Assets and liabilities of the subsidiary at the date of
acquisition must be added to those of the parent at
the beginning of the current year.
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Compare
Compare U.S.
U.S. GAAP
GAAP and
and IFRS
IFRS
Application of the Equity Method
Slide
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Compare
Compare U.S.
U.S. GAAP
GAAP and
and IFRS
IFRS
Application of the Equity Method
Slide
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Compare
Compare U.S.
U.S. GAAP
GAAP and
and IFRS
IFRS
Application of the Equity Method
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Two categories:
Three-division workpaper format used in this text.
Trial balance format.
Columns are provided for the trial balances, the
elimination entries, and normally, each financial
statement to be prepared, except for the
statement of cash flows.
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Copyright
Copyright
Copyright 2012 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted
in Section 117 of the 1976 United States Copyright Act
without the express written permission of the copyright owner
is unlawful. Request for further information should be
addressed to the Permissions Department, John Wiley & Sons,
Inc. The purchaser may make back-up copies for his/her own
use only and not for distribution or resale. The Publisher
assumes no responsibility for errors, omissions, or damages,
caused by the use of these programs or from the use of the
information contained herein.
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