ACC 4100 Lecture Notes - Lecture 7: Equity Method, Income Statement
22 Jul 2018
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Document Summary
When consol a sub that was acquired on a date other than the first day of the fe: presentation of consol info preacq. earnings are ignored in consol income statement. When the parent uses acq method for business combo and sells shares of tis sub, this is. If majority control is not maintained but sig inf. Exists, the equity method is still used to account for the inv and consol f/s are required. All of the following stmt regarding the sale of sub shares are true except: The use of specific lifo assumption is acceptable. Btw selling price and carrying value is recorded as an adjustment to additional paid in capital. Acquisition method then sale of shares that neither control nor sig. The diff btw selling price and carrying value is recorded as a realized gain or loss. In comparing us gaap and ifrs with regard to a basis for measurement of nci.
