Which of the following transactions will affect both the consolidated net income attributable to the parent and the non-controlling interest in net assets of subsidiary (NCINAS)? A. Goodwill impairment under the partial goodwill method. B. Dividend declared but not yet paid by the subsidiary. C. Dividend declared and paid by the parent. D. Provisional amount finalized two months prior to the preparation of consolidated financial statements.

Which of the following transactions will affect both the consolidated net income attributable to the parent and the non-controlling interest in net assets of subsidiary (NCINAS)? A. Goodwill impairment under the partial goodwill method. B. Dividend declared but not yet paid by the subsidiary. C. Dividend declared and paid by the parent. D. Provisional amount finalized two months prior to the preparation of consolidated financial statements.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter6: Audit Evidence

Section: Chapter Questions

Problem 15CYBK

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1- In a business combination resulting in a parent-subsidiary relationship, the identifiable net assets of the subsidiary must be reflected in the consolidated balance sheet at their current values on the date of the business combination. Does this require the subsidiary to enter the current fair values of the identifiable net assets in its accounting records? Explain. 2- The controller of Ahmed Corporation, which has just become the parent of Hassan Company in a business combination, inquires if a consolidated income statement is required for the year ended on the date of the business combination. What is your reply? Explain
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