Discuss effects of alternative investment accounting method

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Problem 1: Using these instructions as well as the instructions at the top of each tab, complete two (4240) or three (6024) consolidation worksheets.

a) Equity method consolidation worksheet

b) Initial value method consolidation worksheet

c) Partial equity method consolidation worksheet (only 6024)

d) Discuss the results found addressing the following:

  • The effects of alternative investment accounting methods on the parent's trial balances and the final consolidation figures.
  • The relation between consolidated retained earnings and the parent's retained earnings under each of the investment accounting methods

Problem 2: Which method did you find easiest to apply and why?

Reference no: EM132676537

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