Describe the concepts and valuation principles underlying the acquisition method of accounting for the noncontrolling interest.

Q: Which of the following elements represents a residual claim? A . Asset.

A: residual claim :

Q: Would the sale be on an underwritten or bestefforts basis?

A: It is one of the most significant capacities in the money related world wherein an individual or a…

Q: What are the Criteria of “Creditable Acquisitions” Please describe!

A: There are many factors that determine if an acquisition is a creditable one or not and for which we…

Q: Required: 1. Determine the goodwill or gain on bargain purchase from the above acquisition.

A: When one company acquired 50% of the capital and assets of another company or more is known as…

Q: Explain how the accounting treatment differs between purchased and internally developed intangible…

A: Intangible assets: Intangible assets are the long-term assets having no physical existence. However,…

Q: revaluation or restatement of assets and liabilitie:

A: Equity is calculated by deducting total liabilities from total assets. It can be more clearly…

Q: What is the purpose of valuation in terms of statutory dimension

A: The valuation is done to ensure that the book value of the assets are measured and recorded in…

Q: Identify the items included in the cost of a self-constructed asset and determine the amount of…

A: The self-constructed asset costs included in the asset cost are as follows direct materials direct…

Q: why does fair value seeking for an acquisition?

A: Reasonable worth is a term with a few implications in the monetary world. In contributing, it…

Q: Liquidation Premise of valuation

A: Liquidation represents the end of the business operations of the company that includes the forced…

Q: What basic principle do U.S. GAAP and IFRS rely upon in recording the initial acquisition value for…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: Asset-Based approach in valuation

A: Assets are the future economic benefit of the company that is sacrificed in paying off the debt and…

Q: When disposing of an available-for-sale investment, where is the gain or loss on disposal reported…

A:

Q: Explain Valuation and how can it be useful for determining

A: Valuation is to know how much is assets worth according to market or deciding fair value of assets.…

Q: Explain the method of direct capitalization method?

A: The three approaches to value a business or an investment are the Income based,  Market based and…

Q: What are the different types of accounting depreciation and their primary purposes?

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Q: hat situational circumstances can the Asset-based valuation be

A: Valuation is the process of determining the fair market value of a company's assets or operations.…

Q: Explain about the existence of an active market in relation to the intangible assets and the…

A: Here discuss about the details of intangible assets and its valuation and accounting treatment which…

Q: Analyze why disposition rather than acquisition is a characteristic

A: Gain or Loss on Disposition refers to the gain or loss resulting from the sale, exchange, or other…

Q: What is meant by issue of debentures as “Purchase Consideration”.

A: Debenture is a long term or medium term debt instrument issued to borrow loan.

Q: The types of assets that qualify for interest capitalization are Assets that are ready for their…

A: Interest capitalization means the amount of interest which is added in the cost of asset instead of…

Q: The disclosure of a line item for Other current assets in the Statement of financial position would…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : Other…

Q: If an entity wants to account for investment property, it may choose between two accounting models.

A: The valuation of investment property is a must have feature in the presentation of the company’s…

Q: What is the goodwill arising from the acquisition?

A: A business combination occurs when an entity acquires control over an organization. Asset purchases…

Q: Explain the difference between the specific interest method and the weighted-average method in…

A: Interest capitalization:

Q: Provide examples of assets that do not qualify for interest capitalization.

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: explain the main different between acquisition method, interest pooling g method and the purchase…

A: Acquisition is one type of mergers and acquisitions, where pooling-of-interest method and purchase…

Q: What are the arguments for giving separate accountingrecognition to the conversion feature of…

A: The separate accounting for recognition is needed as convertible debenture has the feature of…

Q: Describe the valuation principles of the acquisition method.

A: Acquisition:   The acquisition refers to the business combination when one entity or organization…

Q: Previously held interest at the date of acquisition shall be measured at: O Acquisition cost O…

A: As per IFRS 3: Business combination previously held interest at the date of acquisition shall be…

Q: Explain the nature of lump-sum purchases including the factor(s) to be considered and the…

A:

Q: The consideration transferred im O Estimated amount O Transaction value O Acquisition date fair…

A: A business combination is a transaction in which one company buys out another (the acquiree). Rather…

Q: how to compute in simplest form the non controlling interest using fair value method and…

A: Non-Controlling Interest Non-controlling interest or minority interest situation occurs when an…

Q: what is the important difference in the acquisition and payment of long-lived assets compared to…

A: Assets are the resources owned by an entity for the purposes of using them for future or for…

Q: Define the term the depreciable life of the asset?

A: Depreciation  is an accounting process through which allocation of an asset’s cost during its useful…

Q: Under IFRS, the recoverable amount of an asset is

A: Introduction:- Impairment loss arise when the amount by which the carrying amount of an asset…