BU457 Lecture Notes - Lecture 2: Cash Flow Statement, Book Value, Retained Earnings
Document Summary
Consolidated cash flows and ownership issues: consolidated cash flow statement: Note: if the parent"s share changes, the nci % changes. Records the increase in the value of the associates share at reporting date. Note: originally recorded at the price paid for the shares and are adjusted to fv through ni or oci at the end of each reporting date. Note: fvtpl investments are reported at fv at each reporting date. Note: the acquisition differential and income is ignored. > 20% but less than 30% ownership = equity method. = significant influence: need to calculate and amortize the acquisition differential at % of ownership, note: a separate allocation of the acquisition differential should be prepared for each incremental investment. Records the income at the % of ownership. Cf statement: (b) parent sells some of its holdings in subsidiary, percent of investment disposed of = (ownership. Before sale ownership after sale) / ownership.
