Why is the percentage of ownership criterion often

Assignment Help Finance Basics
Reference no: EM131119069

Some accounting theorists propose that firms should consolidate any entity in which they have a "controlling financial interest." Typically, the percentage of equity ownership that one firm has in another entity determines whether consolidation is appropriate, with greater than 50 percent ownership requiring consolidation.

Why is the percentage of ownership criterion often not appropriate for judging whether a VIE should be consolidated? What criterion is used to determine whether a VIE should be consolidated?

Reference no: EM131119069

Questions Cloud

Is the functional currency of the subsidiary the peso : who have been transferred to the subsidiary for a tour of international service. Is the functional currency of the subsidiary the peso or the U.S. dollar? Explain your reasoning.
Find the general solution of the differential equation : Find the general solution of the differential equation - Please show all work
Identify the molecules as an alkane alkene alkyne and acohol : Identify the following molecules as an alkane, alkene, alkyne, alcohol, ether, thiol, aldehyde, ketone, carboxylic acid, ester, amine or amide. One term will not be used.
Analyze the key reasons why some health care organizations : Analyze the key reasons why some health care organizations have been reluctant to implement electronic medical records in their health care services. Next, speculate on the impact of technologies on health care information systems within the next ..
Why is the percentage of ownership criterion often : Why is the percentage of ownership criterion often not appropriate for judging whether a VIE should be consolidated
What is the context for the text : What is the context for the text? What are the historical, political, economic, or social forces that shaped the text?
Complaining about something happening in our communities : How many times have we heard someone complaining about something happening in our communities--but offering no solutions for the problem? This assignment is designed to develop your problem-solving skills and engage you in a substantive conversati..
Evaluate the definite integrals : Verify that F(x) is an antiderivative of the integrand f(x) and use the fundamental theorem to evaluate the definite integrals.
How do groups normally develop : Based on your self-assessment, what do you see as your strengths and weaknesses regarding working on a team?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd