Textbook Notes (363,693)
Canada (158,533)
Accounting (526)
ACC 703 (19)
Chapter 4

Chapter 4 Summary

2 Pages
Unlock Document

ACC 703
Julie Mc Donald

Chapter4ConsolidationofNonWhollyOwnedSubsidiariesLearning ObjectivesAfter studying this chapter you should be able to do the following1Explain the basic differences between the four theories of consolidation2Prepare a consolidated balance sheet using the entity theory3Prepare a consolidated balance sheet using the parent company extension theory4Explain the concept of negative goodwill and describe how it should be treated when it arises in a business combination5Account for contingent consideration based on its classification as a liability or equity6Analyze and interpret financial statements involving consolidation of nonwholly owned subsidiaries7Identify some of the differences between IFRS and ASPE involving consolidation of nonwholly owned subsidiaries8Prepare a consolidated balance sheet using the working paper approachWhat You Really Need To KnowConsolidated financial statements present the financial position and operating results of a group of companies under common control as if they constitute a single entity When one company gains control over another company it becomes a parent company and GAAP requires it to present consolidated statements for external reporting purposes The preparation involves eliminating the parents investment account and the parents share of the subsidiarys shareholders equity accounts revaluing the net assets of the subsidiary to fair value and establishing the noncontrolling interest NCI in the fair value of the subsidiarys net assets Either the entity method or the parent company extens
More Less

Related notes for ACC 703

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.