liabilities were as follows: 1. Based on the preceding information‚ the differential reflected in a consolidation workpaper to prepare a consolidated balance sheet immediately after the business combination is: A. $0. B. $25‚000. C. $70‚000. D. $45‚000. 2. Based on the preceding information‚ what amount should be allocated to goodwill in the consolidated balance sheet‚ prepared after this business combination? A. $0 B. $25‚000 C. $70‚000 D. $45‚000 On December 31‚ 2009‚ Add-On Company acquired
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statements for a consolidated entity‚ elimination entries are prepared that are not recorded on the books of either the parent or the subsidiary entries. A summary of elimination entries is provided below. Intercompany Sales of Merchandise Intercompany sales of inventory cause there to be unrealized profit on the books of the consolidated entity. The consolidated income statement should reflect only revenues earned through transactions with parties outside of the consolidated group; profits
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Chapter 7 - Consolidated Financial Statements - Ownership Patterns And Income Taxes CHAPTER 7 CONSOLIDATED FINANCIAL STATEMENTS - OWNERSHIP PATTERNS AND INCOME TAXES Answers to Problems 1. D 2. B 3. D 4. C 5. C 6. C 7. A Damson ’s accrual-based income: Operational income ................................................................... Defer unrealized gain ................................................................ Damson ’s accrual-based income ......................................
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200; $5‚200 0.25 = (1‚300) Profit included in consolidated income 28‚700 Percentage interest 0.10 Noncontrolling interest in consolidated income $ 2‚870 2012 (Rounded to nearest dollar) Reported net income $ 35‚000 Intercompany profit included in beginning inventory‚ now realized 1‚300 Unrealized intercompany profit included therein = $6‚250; $6‚250 0.25 = (1‚563) Profit included in consolidated income 34‚737 Percentage interest 0.10
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HKAS 27 (December 2004March 2008) Hong Kong Accounting Standard 27 Consolidated and Separate Financial Statements* * This HKAS 27 is applicable for annual periods beginning on or after 1 January 2005 but before 1 July 2009. HKAS 27 (Revised) issued in March 2008 is applicable for annual periods beginning on or after 1 July 2009 and supersedes this HKAS 27. 1 HKAS 27 COPYRIGHT © Copyright 2008 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial Reporting Standard
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THE “ORNGE” FINANCIAL STATEMENTS WHICH BEGIN BELOW WERE EXTRACTED FROM: Ontario Ministry of Finance PUBLIC ACCOUNTS of ONTARIO 2010-2011 PUBLIC ACCOUNTS‚ 2010-2011 1-227 Ornge June 29‚ 2011 The accompanying consolidated financial statements of Ornge have been prepared in accordance with Canadian generally accepted accounting principles‚ and are the responsibility of management. The preparation of financial statements necessarily involves the use of estimates and assumptions
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5.13.205.60 Under the first approach in 5.13.205.40‚ management of Newco concludes that a business combination has occurred in which Newco is the acquirer (as the vehicle for the new shareholders). Accordingly‚ Newco applies IFRS 3 to the acquisition of both Y and Z. 5.13.205.70 Under the second approach in 5.13.205.40‚ the transaction is analysed as follows. • It is a business combination amongst entities under common control. • Newco chooses to apply book value accounting (see 5.13.50
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1. Calculate the current ratio for y/e 2/1/09 and y/e 1/31/10 The current ratio for year ending 2/1/09 is 1.20:1=$13‚362/$11‚153. The current ratio for year ending 1/31/10 is 1.34:1=$13‚900/$10‚363. Reference: Pg. A-4‚ Consolidated Balance Sheets‚ Current Assets & Current Liabilities or Pg. A-12‚ 10-Year Summary of Financial and Operating Results‚ Balance Sheet Data and Financial Ratios 2. What were the diluted earnings per share for y/e 2/3/08? The diluted earnings for year ending 2/3/08
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FA4 — Module summaries Module 1 summary This module summarizes and explains the foundation of international financial reporting standards (IFRS). It also examines the nature of financial instruments and how the method of accounting for them varies based on their nature. Describe the development of international financial reporting standards (IFRS)‚ and discuss the reasons and processes followed by the AcSB for the adoption of international accounting standards in Canada. The global acceptance
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http://www.homeworkmarket.com/content/acc-exam 1. Which of the following situations best describes a business combination to be accounted for as a statutory merger? Both companies in a combination continue to operate as separate‚ but related‚ legal entities. Only one of the combining companies survives and the other loses its separate identity. Two companies combine to form a new third company‚ and the original two companies are dissolved. One company
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