BUS 420 Chapter Notes - Chapter 8: Consolidated Financial Statement, Book Value, Financial Statement

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 420
• Professor: Arsineh Garabedian

Document Summary

Amortization of fvi and goodwill impairment losses are non-cash items a: nci in income statement. An allocation of the entity income, which does not require a cash payment c. d. Will be added back to consolidated net income (recognized) Dividends paid by the subsidiary to the non-controlling interest are a cash outflow under financing activities. If a subsidiary is purchased in the year, an additional interest is purchased, or the parent sells part of its ownership interest, the overall cash balance is affected. Cash flow under investing activities will be affected. P co. buys 60% of s co. on jan 1, 2009 for ,000 cash. On that date, s co. had common shares of ,000 and retained earnings of ,000, and the fair value of all net assets was equal to the book value. S co. assets included ,000 of cash on jan 1, 2009.