RSM321H1 Chapter Notes - Chapter 3: Retained Earnings, Impaired Asset, Independent Business

• School: UTSG
• Department: Rotman Commerce
• Course: RSM321H1
• Professor: Julie Mc Donald

Document Summary

There are 3 main forms of business combinations. B(cid:455) addi(cid:374)g the a(cid:272)(cid:395)uisitio(cid:374) diffe(cid:396)e(cid:374)tial to the (cid:272)a(cid:396)(cid:396)(cid:455)i(cid:374)g a(cid:373)ou(cid:374)t of the su(cid:271)"s (cid:374)et assets on a line-by-line basis, we end up with the fai(cid:396) (cid:448)alue of the su(cid:271)"s assets a(cid:374)d lia(cid:271)ilities. It (cid:448)alues (cid:271)oth the pa(cid:396)e(cid:374)t"s sha(cid:396)e a(cid:374)d the nci"s sha(cid:396)e of ide(cid:374)tifia(cid:271)le (cid:374)et assets at. Excess of fv over cv for identifiable net assets [fv-cv] X: the consolidated b/s is prepared by combining, on an item-by-item basis, the. Cv (cid:894)p(cid:895) + fv (cid:894)s"s identifiable net assets(cid:895) + parent"s share of sub"s gw. Gw is i(cid:374)se(cid:396)ted as a(cid:374) asset, a(cid:374)d the (cid:272)al(cid:272)ulated nci is sho(cid:449)(cid:374) i(cid:374) shh"s equity: (cid:1005)(cid:1004)(cid:1004)% of su(cid:271)"s fv of ide(cid:374)tifia(cid:271)le assets a(cid:374)d lia(cid:271)ilities plus pa(cid:396)e(cid:374)t"s sha(cid:396)e of the su(cid:271)"s gw a(cid:396)e (cid:271)(cid:396)ought o(cid:374)to the (cid:272)o(cid:374)solidated b/s. Excess of fv over cv for identifiable net assets [fv-cv] i(cid:374)(cid:272)ludi(cid:374)g (cid:271)oth pa(cid:396)e(cid:374)t a(cid:374)d su(cid:271)"s full gw.