ADMS 4520 Chapter Notes - Chapter 6: Problem Solving, Equity Method, Extension Method

• School: York University
• Department: Administrative Studies
• Course: ADMS 4520
• Professor: Patricia Farrell

Document Summary

Adms 4520 ch 6 subsequent year consolidations: general approach. If not 100% owned factor in non controlling interest: ex. Losses on intercompany sales may or may not be eliminated whether loss reflects impairment on asset. If no evidence of impairment of asset sold intercompany loss eliminated. If sale price reflects impairment asset written down without sale. 307: more info p. 308, exhibit 6. 5 p. 309 separate entity fs, caution for students, problem solving approach when attempting consolidation for learning & practice. 21000$ eliminated: eliminate excess depreciation & recognize portion of gain in. 2008 & 2009 3000$ each year (91000/7 = 13000 3000 excess of 10000 depreciation of parent company) 2=1200 ; reduce accum depreciation 6000: eliminate excess depreciation & recognize portion of gain in. Inventory: typically su(cid:271)sidia(cid:396)y"s i(cid:374)(cid:448)e(cid:374)to(cid:396)y sold (cid:271)y e(cid:374)d of yea(cid:396) but. Fvi of 10000$ to inventory cost of inventory is. 10000$ higher: amortize reduce ni 10000& ending consolidated re by.