Preparation of consolidated financial statements

Assignment Help Accounting Basics

Reference no: EM132893670

Chapter: Consolidation: wholly owned entities

1.Briefly describe the consolidation process in the case of wholly owned entities.

2.Explain the adjustments that may be required as part of the consolidation process.

3.Explain the purpose of the acquisition analysis in the preparation of consolidated financial statements.

4. At the date the parent acquires a controlling interest in a subsidiary, if the carrying amounts of the subsidiary's assets are not equal to their fair value, explain why adjust- ments to these assets are required in the preparation of the consolidated financial state- ments.

5. Explain the purpose of the business combination valuation entries in the preparation of consolidated financial statements.

6. Explain the purpose of the pre-acquisition entries in the preparation of consolidated financial statements.

7. Explain how the existence of a gain on bargain purchase affects the pre-acquisition entries, both in the year of acquisition and in subsequent years.

8. Why are some adjustment entries in the previous period's consolidation worksheet also made in the current period's worksheet?

9.Explain how and why the pre-acquisition entries will be adjusted in subsequent years after the acquisition date.

Reference no: EM132893670

Questions Cloud

What is DC variable overhead efficiency variance : Based on the above information and assuming that DLH is a useful predictor of VOH, what is DC's variable overhead efficiency variance

Petitioner no 15-7 vs united states and massachusetts : In the supreme Court of the United States Universal Health Services Inc. Petitioner No 15-7 Vs United States and Massachusetts, EX REL Julio Escobar And Carmen

Importance of perception in organizational behave : What is the importance of perception in organizational behave?

Explain the concept of imitability : Explain the concept of imitability.? Explain the correlation between the success and failure of global firms and the institution- and resource-based views

Preparation of consolidated financial statements : Explain the adjustments that may be required as part of the consolidation process and Explain the purpose of the pre-acquisition entries in the preparation

How effective is your organization strategic vision : How effective is your organization's strategic vision?

What financial reporting cycles can be used by organization : Explain the purpose of each of the following: a cash flow budget, a capital expenditure budget, a sales budget and explain, in general terms, what procedures sh

Illustrate XYZ accounting for the machine : XYZ Ltd transfers the machine to the customer on 1 January 2018. Illustrate XYZ's accounting for the machine by preparing journal entries

Discuss whether woodchuck ltd is a subsidiary : Discuss the potential for Tweety Pie Ltd to be classified as a subsidiary of Sylvester Ltd and Discuss whether Woodchuck Ltd is a subsidiary

User Account

All Pages