Advanced Accounting Chapter 4:Consolidated Financial Statements after Acquisition.doc
《Advanced Accounting Chapter 4:Consolidated Financial Statements after Acquisition.doc》由会员分享,可在线阅读,更多相关《Advanced Accounting Chapter 4:Consolidated Financial Statements after Acquisition.doc(12页珍藏版)》请在三一文库上搜索。
1、Advanced Accounting Chapter 4:Consolidated Financial Statements after AcquisitionAdvanced Accounting by Debra Jeter and Paul ChaneyChapter 4: Consolidated Financial Statements after AcquisitionAccounting for InvestmentsAccounting Methods for Investments Cost MethodThe investment account is adjusted
2、only when additional shares are purchased or soldPartial Equity MethodThe investment account is adjusted for the investors share of investee income and dividendsComplete Equity MethodAdditional adjustments are made for unrealized intercompany profit and amortization of purchase differentialCost Meth
3、od Investment in SAcquisitionCostDividend IncomeShare of dividends declared of SInvestment Related Accounts of ParentLiquidating dividendPartial Equity MethodInvestment in SEquity in subsidiary incomeInvestment Related Accounts of ParentAcquisition CostEquity in subsidiary incomeShare of dividendsde
4、claredEquity in subsidiary lossEquity in subsidiary lossEquity in subsidiary incomeComplete Equity MethodInvestment in SEquity in subsidiary incomeInvestment Related Accounts of ParentAcquisition CostEquity in subsidiary incomeShare of dividendsdeclaredEquity in subsidiary lossEquity in subsidiary l
5、ossEquity in subsidiary incomeAmortization of goodwillCost Method - Eliminating Entries (EE)Year of AcquisitionThe Investment EntryCommon Stock - S Company 80,000Other Contributed Capital - S Company 40,0001/1 Retained Earnings - S Company 32,000Difference between cost and book value13,000Investment
6、 in S Company 165,000Note: eliminate beginning retained earnings of the subsidiaryThis entry is the same as the investment entry on the acquisition date (true for the first year only)Cost Method - Eliminating Entries (EE)Year of AcquisitionThe Differential EntryLand 13,000Difference between cost and
7、 book value 13,000To allocate the differential between cost and book valueto the appropriate account(s)This entry is the same as the differential entry on the acquisition dateCost Method - Eliminating Entries (EE)Year of AcquisitionThe Dividend EntryDividend income - P 8,000Dividends declared - S8,0
8、00To eliminate the contra-equityaccount of the subsidiaryTo avoid double counting of incomeNoncontrolling Interest in IncomeNoncontrolling Interest in IncomeReported income of SAdjustmentsAdjusted NI of SNoncontrolling %Noncontrolling interest in income+-xControlling Interest in IncomeControlling In
9、terest in IncomeReported income of PAdjustments(Adjusted NI of S) x (P %)Controlling interest in income+-+Consolidated Retained EarningsConsolidated Retained EarningsReported R/E of PConsolidated NIConsolidated R/E+Dividends declared of P-Cost Method EEs After Year of AcquisitionThe Reciprocal Entry
10、Investment in S Company16,0001/1 Retained Earnings - P Company 16,000Adjust the investment account to equal the amount it would have under equity methodAdjust Ps reported beginning R/E to equal beginning consolidated R/EOther Entries(similar to the first year EE)Equity Method EEs Year of Acquisition
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- Advanced Accounting Chapter 4:Consolidated Financial Statements after Acquisition Consolidated
链接地址:https://www.31doc.com/p-6348306.html