Đang chuẩn bị liên kết để tải về tài liệu:
Lecture Advanced accounting (11/e): Chapter 4 - Hoyle, Schaefer, Doupnik

Chapter 4 - Consolidated financial statements and outside ownership. After studying this chapter, you should be able to: Understand that complete ownership is not a prerequisite for the formation of a business combination; describe the valuation principles underlying the acquisition method of accounting for the noncontrolling interest; allocate goodwill acquired in a business combination across the controlling and noncontrolling interests;. | Chapter Four Consolidated Financial Statements and Outside Ownership Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Noncontrolling Interest Although most parent companies do possess 100 percent ownership of their subsidiaries, a significant number establish control with a lesser amount of stock. If the parent doesn’t own 100% of the company, WHO owns the rest of it? Noncontrolling Shareholders The ownership interests of the Noncontrolling Shareholders must be reflected in the consolidated financial statements. 4- LO 1 4- 2 Although most parent companies do possess 100 percent ownership of their subsidiaries, a significant number establish control with a lesser amount of stock. If the parent doesn’t own 100% of the company, WHO owns the rest of it? Noncontrolling Shareholders The ownership interests of the Noncontrolling Shareholders must be reflected in the consolidated financial statements. Noncontrolling Interest 4- The Parent, with controlling interest, must consolidate 100% of the Subsidiary’s financial information. The acquisition method requires that the subsidiary be valued at the acquisition-date fair value. The total acquired firm fair value in a partial acquisition is the sum of The fair value of the controlling interest. The fair value of the noncontrolling interest at the acquisition date. LO 2 4- 2 The Parent, with controlling interest, must consolidate 100% of the Subsidiary’s financial information. The acquisition method requires that the subsidiary be valued at the acquisition-date fair value. The total acquired firm fair value in a partial acquisition is the sum of The fair value of the controlling interest. The fair value of the noncontrolling interest at the acquisition date. Noncontrolling Interest Example Parker purchased 9,000 shares at $70 per share. The fair value of their consideration transferred is $630,000. The remaining 1,000 shares trade at $60 per share indicating that the . | Chapter Four Consolidated Financial Statements and Outside Ownership Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Noncontrolling Interest Although most parent companies do possess 100 percent ownership of their subsidiaries, a significant number establish control with a lesser amount of stock. If the parent doesn’t own 100% of the company, WHO owns the rest of it? Noncontrolling Shareholders The ownership interests of the Noncontrolling Shareholders must be reflected in the consolidated financial statements. 4- LO 1 4- 2 Although most parent companies do possess 100 percent ownership of their subsidiaries, a significant number establish control with a lesser amount of stock. If the parent doesn’t own 100% of the company, WHO owns the rest of it? Noncontrolling Shareholders The ownership interests of the Noncontrolling Shareholders must be reflected in the consolidated financial statements. Noncontrolling Interest 4- The Parent,