A consolidated income statement must clearly separate income attributable to the controlling and noncontrolling interests Select one: True False
Q: In consolidated financial statements, it is expected that net income equals the sum of the income…
A: The consolidated net income is calculated by deducting the consolidated expenses from the…
Q: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: Option (a) i.e. neither 1 nor 2, is the correct answer. Explanation is given in next step.
Q: Revenue is recognized when it is earned; therefore revenue earned for a consolidated entity occurs…
A: When one company or its subsidiary company , hold more than 50% share in another company , then…
Q: 25. The other comprehensive income section shall present line items for amounts of other…
A: Other comprehensive income is the bottom part of the income statement where all unrealised gain or…
Q: In many cases, EPS is computed based on the parent’s portion of consolidated net income and parent…
A: Answer:
Q: hen an investor uses the cost method to account for investments in subsidiary, cash dividends…
A: Solution Concept Cost method to account for investments in subsidiary This method is used…
Q: hat is the noncontrolling interest in Subsidiary income? Select one: a. The portion of Subsidiary…
A: The shareholders holding more than 50% stake in the company become the holding company.
Q: Profits or losses are recorded in a share capital account. O TRUE O FALSE The main differences…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Explain the theory behind the residual income valuation approach. Discuss why residual income value…
A: The estimation of the remaining revenue utilizes the book value parameters for common shareholder…
Q: what is the difference between marketable equity securities held as financial asset at fair value…
A: Financial assets are the intangible assets, which are used as investment asset by the investors.…
Q: What is the controlling interest percentage for a business combination tax return? what does a…
A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: Profits that have been subjected to IAET will be liable to dividend tax when they are eventually…
A: Tax is the charge which is charged on the taxable income earned by the corporation or business…
Q: Profits or losses are recorded in a share capital account. O TRUE O FALSE The main differences…
A: Pay as you earn system or tax deduction at source in some countries are the advance tax payment…
Q: The following independent statements may be true or false. Discuss the circumstances whereby the…
A: Consolidated Profit After Tax means the Borrowers' current consolidated earnings (excluding…
Q: Dividends are recognized in profit or loss only when a. the entity's right to receive payment of…
A: Solution: Dividends are recognized in profit or loss only when a. the entity's right to receive…
Q: Do you agree with the accounting treatment that Overstock typically applied to the revenues…
A: Revenues include amount of service revenue provided and merchandise goods sold in the market. It is…
Q: consolidated income statement
A: Consolidated Income Statement -: A revenue or income statement that incorporates the income,…
Q: Hi, may i know more clearer explanation to calculate the gain or loss on the disposal of the share…
A: When a company acquires 50% or more interest in an company, it means it is acquiring the…
Q: Which of the following statements is true about conting consideration under the revised PFRS 3? O…
A: Contingent consideration is defined as the obligation or liability of the buyer or acquirer to…
Q: Wnen presenting a consolidated statement of financial position, the non-controlling interest is:
A: Non-controlling interest is also sometimes written as NCI. It arises when someone holds less than…
Q: Which of the following statements is incorrect regarding provisions of PAS 1? a. An entity is…
A: The question is multiple choice question Required Choose the Correct Option.
Q: PFRS 9 permits an entityto make an irrevocable election to present in other comprehensive income…
A: Solution: According to PFRS 9, "An entity may make an irrevocable election to present in other…
Q: Which of the following income items may affect both Consolidated Net Income attributable to Parent…
A: Consolidation Consolidation means the parent company taken over the shares of subsidiary company…
Q: In the cost method of acquisition income is recognized only when the subsidiary declares dividends…
A: In Cost Method of consolidation the investment is recognized as assets and when Subsidiary pays the…
Q: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…
A: Option (a) i.e. neither 1 nor 2, is the correct answer. Explanation is given in the next step.
Q: Dividends are recognized in profit or loss only when: Group of answer choices: The entity’s right…
A: Solution: Dividends are recognized in profit or loss only when: 1. The entity’s right to receive…
Q: Dividends are recognized in profit or loss
A: First option is correct because an income is recognized only when it can be measured reliably. Third…
Q: Equal distribution
A: Equal distribution of profits and losses recognize disparity in capital contribution, time and…
Q: How shall an acquirer in a business combination account for the changes in fair value contingent…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
Q: Which statement is true in relation to business combination achieved in stages? a. The pre-existing…
A: A business combination achieved in stages is called as a step acquisition
Q: The following independent statements may be true or false. Discuss the circumstances whereby the…
A: DIVIDEND IS THE AMOUNT OF MONEY A COMPANY PAY TO IT'S SHAREHOLDER REGULARLY OUT OF ITS PROFIT .
Q: Under the cost method, dividends from the subsidiary to the parent Oa. are recognized in income when…
A: Certain investments are recorded in a company's financial statements using the cost method of…
Q: In a consolidated statements workpaper, which items are carried forward from one section to another?…
A: Following is the answer to the given question
Q: Under the equity method of accounting parent-retained earnings and the consolidated-retained…
A: Consolidated Balance Sheet:-It is a Balance Sheet that consists of assets, liabilities, and…
Q: When an entity uses the fair value model, changes in the fair values of investment property are…
A: Fair value model and cost model are two methods of recording changes in fair value of investment…
Q: In the equity method of acquisition income is recognized only when the subsidiary declares dividends…
A: In the equity method of acquisition, income is recognized when the subsidiary company earns net…
Q: Under fair-value accounting for an equity investment, which of the following affects the income the…
A: Investments: Companies invest in stocks and bonds of other companies or governmental entity to…
Q: Which one of the following statements is incorrect with regards to non-controlling interests? 1.…
A: Non controlling interest (NCI) also known as minority interest is a term representing minority…
Q: If a company prepares a consolidated income statement, IFRS requires that net income be reported O…
A: Consolidated income statement includes all the expenses and incomes of both parent company and…
Q: How should negative goodwill be shown on the consolidated financial statements of the acquirer?…
A: Introduction:- Negative goodwill arises, where one company (Acquirer company) purchases or acquires…
Q: In a consolidated statement of financial position, the non-controlling interest is shown: Group of…
A: Statement of financial position is one of the financial statement of the business, which shows all…
Q: Other comprehensive income includes the following, except A. unrealized gain on derivative contract…
A: Comprehensive income statement: It shows all the income earned by the business during an accounting…
Q: How should an associate be accounted for in the consolidated statement of profit or loss? A The…
A: Consolidation Statement- Consolidated Statement refers to the financial statement under which final…
Q: When a contingent consideration arising from a business combination is classifled as equity, how is…
A: Contingent Consideration Contingent consideration is the amount which was promised by the buyer to…
Q: Goodwill is attributed to both the owners of the parent and non-controlling interests…
A: A non-controlling interest (NCI), formerly known as a minority interest represents a shareholder or…
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- List the types of intercompany revenue and expenses that are eliminated in the preparation of a consolidated income statement and indicate the effect that each elimination has on the amount of net income attribute to non-controlling interestDemonstrate the computation and allocation of consolidated net income in the presence of a noncontrolling interest.Please concisely explain how the excess investment cost over book value is allocated. When is the intra-entity’s profits recognized on transfers between the investor and investee? What is the controlling interest percentage for a consolidated accounting financial statement?
- How should negative goodwill be shown on the consolidated financial statements of the acquirer? Group of answer choices As a liability on the statement of financial position As a loss on the statement of comprehensive income As a separate amount under shareholders' equity on the statement of financial position As a gain on the statement of comprehensive incomeFor fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl ected in shareholders’ equity? C . Th ey are a component of accumulated other comprehensive income.Which of the following statements is correct? Multiple Choice Earnings and profits are exactly the same as retained earnings. Distributions of appreciated property create a gain to the stockholder recipient. A distribution from earnings and profits is a dividend. Distributions paid in excess of earnings and profits are taxable to the extent of stockholder basis.
- Which of the following statements is correct? Earnings and profits are exactly the same as retained earnings. Distributions paid in excess of earnings and profits are taxable to the extent of stockholder basis. Distributions of appreciated property create a gain to the stockholder recipient. A distribution from earnings and profits is a dividendConsidering the intercompany transactions, compute for the non-controlling interest in net income.Comprehensive income includes: profit or Loss only other comprehensive income only both profit or loss and other comprehensive income neither profit or loss nor other comprehensive income
- Which item, if it exists, is NOT required to be presented as a line item on the face of statement of Profit or Loss and other comprehensive income? Select one: a. Share of the profit or loss of associates b. Revenue c. Income tax payable d. Profit or loss attributable to minority interestsExplain the theory behind the residual income valuation approach. Discuss why residual income value is relevant to common equity shareholders and explain the two roles of book value of common shareholder’s equity in the residual income valuation approachExplain the effect of equity method on the consolidated income statement andstatement of financial position. GIve explanation how do we show under consolidated IS & consolidated SOFP based on equity method?