ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 10, Problem 10.18Q
To determine
Introduction:
Consolidated earnings per share: Consolidated earnings per share can be calculated in a similar manner as earnings per share is calculated in a single corporation. Consolidated earnings per share is calculated using income accredited to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and preferred dividends of the parent company if any from consolidated net income, divided by the weighted-average number of the parent’s common shares outstanding during the period. An important point to be considered here is, in the calculation of the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are assumed as had been exercised. In addition, income available to subsidiary common shareholders also changes.
The treatment of
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Chapter 10 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 10 - Prob. 10.1QCh. 10 - Why are dividend payments to noncontrolling...Ch. 10 - Prob. 10.3QCh. 10 - Why are changes in inventory balances not shown in...Ch. 10 - Prob. 10.5QCh. 10 - How is an increase in inventory included in the...Ch. 10 - What portion of the sales of an acquired company...Ch. 10 - Prob. 10.8QCh. 10 - Prob. 10.9QCh. 10 - Prob. 10.10Q
Ch. 10 - Prob. 10.11QCh. 10 - Prob. 10.12QCh. 10 - Prob. 10.13QCh. 10 - Prob. 10.14QCh. 10 - How do interperiod income tax allocation...Ch. 10 - How does the use of interperiod tax allocation...Ch. 10 - Prob. 10.17QCh. 10 - Prob. 10.18QCh. 10 - Prob. 10.19QCh. 10 - When a subsidiary’s convertible bond is treated as...Ch. 10 - Prob. 10.21QCh. 10 - What effect does the presence of a noncontrolling...Ch. 10 - Prob. 10.3CCh. 10 - Consolidated Cash Flows Analysis The consolidated...Ch. 10 - Prob. 10.1ECh. 10 - Prob. 10.2ECh. 10 - Prob. 10.3ECh. 10 - Prob. 10.4ECh. 10 - Prob. 10.5ECh. 10 - Direct Method Cash Flow Statement Using the data...Ch. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Prob. 10.10ECh. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Effect of Convertible Bonds on Earnings per Share...Ch. 10 - Effect of Convertible Preferred Stock on Earnings...Ch. 10 - Prob. 10.17PCh. 10 - Prob. 10.18PCh. 10 - Preparing a Statement of Cash Flows—Direct Method...Ch. 10 - Prob. 10.20PCh. 10 - Prob. 10.21PCh. 10 - Prob. 10.22PCh. 10 - Prob. 10.23PCh. 10 - Prob. 10.24PCh. 10 - Prob. 10.25PCh. 10 - Prob. 10.26PCh. 10 - Prob. 10.27PCh. 10 - Prob. 10.28PCh. 10 - Prob. 10.29PCh. 10 - Prob. 10.30PCh. 10 - Prob. 10.31PCh. 10 - Prob. 10.32PCh. 10 - Prob. 10.33P
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- Which of the following measures the portion of a corporations profit allocated to each outstanding share of common stock? A. retained earnings B. EPS C. EBITDA D. NOPATarrow_forwardQuestion: How do you account for non-controlling interests in consolidated financial statements using the equity method?arrow_forwardPlease 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?arrow_forward
- How is non-controlling interest in the subsidiary’s net assets presented in the consolidated statement of financial position? a. Within equity but separately from the equity of the owners of the parents. b. Within equity as part of retained earnings. c. Any of these as a matter of accounting policy choice. d. As a mezzanine item between liabilities and equity.arrow_forwardWhich of the following correctly reflects the effect of dividend? a. On the date of distribution of large share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - No effect b. On the date of payment of property dividend: ASSETS - Decrease, LIABILITIES - Decrease, EQUITY - Decrease c. On the date of declaration of small share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - Decrease d. On the date of declaration of dividend: ASSETS - No effect, LIABILITIES - Decrease, EQUITY - Decrease Which of the following illustrates the effect of 15% share dividend declared and issued when the market price is higher than the par value? * a. RETAINED EARNINGS - Increase, SHARE PREMIUM - Decrease, TOTAL EQUITY - Increase b.RETAINED EARNINGS - Increase, SHARE PREMIUM - Increase, TOTAL EQUITY - Increase c. RETAINED EARNINGS - Decrease, SHARE PREMIUM - Increase, TOTAL EQUITY - No…arrow_forwardrdinary share capitalOrdinary share capitalWhich of the following items would not form part of the shareholders' equity of a company on the statement of financial position? Select one: a. Retained profits b. Trade payables c. Share premium d. Ordinary share capitalarrow_forward
- Which of the following correctly reflects the effect of dividend? a. On the date of payment of property dividend: ASSETS - Decrease, LIABILITIES - Decrease, EQUITY - Decrease b. On the date of declaration of small share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - Decrease c. On the date of declaration of dividend: ASSETS - No effect, LIABILITIES - Decrease, EQUITY - Decrease d. On the date of distribution of large share dividend: ASSETS - No effect, LIABILITIES - No effect, EQUITY - No effectarrow_forwardShare dividends distributed shall be reported as a note to financial statement a reduction in total shareholders' equity an addition to share capital outstanding a current liabilityarrow_forwardIn consolidated financial statements, it is expected that: A. Retained earnings equals to the sum of controlling interest separate retained earnings and non-controlling interest separate retained earnings. B. Ordinary share equals to the sum of parent’s ordinary share and subsidiary’s ordinary share. C. Net income equals to the sum of the income distributed to the controlling interest and distributed to non-controlling interest. D. Dividends declared equals the sum of the total parent company’s declared dividends and the total subsidiary’s declared dividends.arrow_forward
- Is Share Dividends qualify as Revenue?arrow_forwardWhich of the following is not normally found in the total equity section of a company's statement of financial position? A. Retained earnings B. Ordinary share capital C. Dividends payable to the ordinary shareholders D. Share premiumarrow_forwardShare dividends distributable is included in the statement of financial position O As a current liability O As a noncurrent liability O As an adjunct account to share capital As a contra-account to share capitalarrow_forward
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