ACTG 6160 Study Guide - Comprehensive Final Exam Guide - Wireless Access Point, Small Form-Factor Pluggable Transceiver, Sierra Entertainment
20 Nov 2018
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Equity investments: fvtpl and fvoci, above the line and below the line, the line = net income, dividends are part of net income, gains are part of oci. Strategic investments: associated companies: not enough to have control. Joint ventures joint control: don"t have sole control: equal partners pooling resources to do something together, spes and ses, move from ias 27 to ifrs 10. Ias 27: focused on subs and ses, and focus on benefits. Joint operation: no need for control, just concerned with the splitting of the profits, individual partners pay their own debts, no rights or claim over each other"s assets and liabilities. Investments in associates: equity method; same application as with joint ventures, apply the proprietary theory. Consolidation and equity method result in the same bottom line if the adjustments you have to make impact net income. These adjustments are not recorded anywhere; they are only to be found in the working papers.
