Concept explainers
a
Introduction: Immediately after a business combination, the parent company records income and dividends from the subsidiary using the equity method. In addition, the parent must also write off portion of differential of excess acquisition price. Further all the intercompany transactions must be eliminated before preparation of consolidated financial statements.
The amount of investment in S reported by P.
b
Introduction: Immediately after a business combination, the parent company records income and dividends from the subsidiary using the equity method. In addition, the parent must also write off portion of differential of excess acquisition price. Further all the intercompany transactions must be eliminated before preparation of consolidated financial statements.
The
c
Introduction: Immediately after a business combination, the parent company records income and dividends from the subsidiary using the equity method. In addition, the parent must also write off portion of differential of excess acquisition price. Further all the intercompany transactions must be eliminated before preparation of consolidated financial statements.
The non-controlling interest reported in consolidated balance sheet.
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