BU487 Chapter Notes - Chapter 8: Dont
Document Summary
Chapter 8 consolidated cash flows and changes in ownership. Fvtpl only dividends and unrealized gains are reported: purchase: debit investment and credit cash, fv of shares increased: debit investment and credit gain - fvtpl. Fvtpl to equity method fv of investment is ignored. When you sell holdings in subsidiary or when they issue additional shares: example: 10,000 outstanding shares, you have 9000 shares and you sell 900 for per share. ,503: and you now own 81% instead of 90%, so nci is now 19, example: company now issues additional 2,000 shares for ,000, your investment balance is. + redeemable portion: step 3: nci net income = (subsidiary net income dividends) * % not acquired then you add back dividends. Indirect shareholdings: make sure to do indirect then direct holdings when calculating it, parent owns 80% of subone and 45% of subtwo.
