ACC 703 Chapter Notes - Chapter 4: Financial Statement, Book Value, Situation Two
7 May 2014
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): the value of the shares attributed to the non controlling additional set of owners who have legal claim to the subsidiary"s net assets: we must assess, how should the portion of the subsidiary"s assets and liabilities that was not acquired by the parent be measured on the consolidated financial statements, how should nci be measured on the consolidated financial statements, how should nci be presented on the consolidated financial statements, theory"s to answer these questions: proprietary theory, parent company theory, parent company extension theory, entity theory, each theory uses in a specific situation under gaap. Parent and nic: the shaded area represents the values brought onto the consolidated financial statements, example, s ltd. = aquired company, p ltd. = guy buying s, assume that on june 30, year 1, s ltd. had 10,000 shares outstanding and p ltd. purchases 8,000 shares (80%) of s ltd. for a total cost of ,000.
