a. Explanation An acquisition is when one company acquires most or all of the shares of another company to gain control over that company. A business is an incorporated set of operations and assets that are able to conduct and maintaining directly to investors or other owners, members or participants in order to provide a yield in the form of dividends, lower costs or other economic advantages. A business combination is defined as a transaction or other event where an acquirer (an investor entity) gains control of one or more companies. Consolidation means combining two or more entities assets, liabilities, and other financial items into one frame. The concept consolidate in financial accounting often pertains to the consolidation of financial statements in which all subsidiaries report under the framework of a parent company. Consolidated financial statements are a group of entities financial statements that are presented as those of a single economic entity. They are the financial statements of a group in which the parent company and its subsidiaries introduce their assets, liabilities, equity, revenue, expenses and cash flows as those of a single business organization. Consolidated accounting is used to club a parent company's financial information and one or more subsidiaries... b. To determine Mention that the reporting firm will qualify for the exception relating to the business assuming the chairman of the reporting company's board of directors has worked with an investment bank to form the legal entity. c To determine Mention that the reporting firm will qualify for the exception relating to the business assuming the chairman of the reporting company's board of directors has worked with an investment bank to form the legal entity which is a joint venture and explain the reason for it.

4th Edition

ISBN: 9781618533128

Author: Halsey

Publisher: Cambridge Business Publishers

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Question

Chapter 6, Problem 42E

To determine

Mention the incentive that the reporting company will be required to qualify for its

variable interest of the legal entity with respect to the exception of the business related

scope in FASB ASC 810.

To determine

Mention that the reporting firm will qualify for the exception relating to the business

assuming the chairman of the reporting company's board of directors has worked with

an investment bank to form the legal entity.

To determine

Mention that the reporting firm will qualify for the exception relating to the business

assuming the chairman of the reporting company's board of directors has worked with

an investment bank to form the legal entity which is a joint venture and explain the

reason for it.

Expert Solution & Answer

Chapter 6 Solutions

ADVANCED ACCOUNTING

Ch. 6 - Prob. 1Q Ch. 6 - Prob. 2Q Ch. 6 - Prob. 3Q Ch. 6 - Prob. 4Q Ch. 6 - Prob. 5Q Ch. 6 - Prob. 6Q Ch. 6 - Prob. 7Q Ch. 6 - Prob. 8Q Ch. 6 - Prob. 9Q Ch. 6 - Prob. 10Q

Ch. 6 - Prob. 11Q Ch. 6 - Prob. 12Q Ch. 6 - Prob. 13Q Ch. 6 - Prob. 14Q Ch. 6 - Prob. 15Q Ch. 6 - Prob. 16Q Ch. 6 - Prob. 17Q Ch. 6 - Prob. 18Q Ch. 6 - Prob. 19Q Ch. 6 - Prob. 20Q Ch. 6 - Prob. 21Q Ch. 6 - Prob. 22Q Ch. 6 - Prob. 23Q Ch. 6 - Prob. 24Q Ch. 6 - Prob. 25Q Ch. 6 - Prob. 26Q Ch. 6 - Prob. 27Q Ch. 6 - Prob. 28MC Ch. 6 - Prob. 29MC Ch. 6 - Prob. 30MC Ch. 6 - Prob. 31MC Ch. 6 - Prob. 32MC Ch. 6 - Prob. 33MC Ch. 6 - Prob. 34MC Ch. 6 - Prob. 35MC Ch. 6 - Prob. 36MC Ch. 6 - Prob. 37MC Ch. 6 - Prob. 38MC Ch. 6 - Prob. 39MC Ch. 6 - Prob. 40MC Ch. 6 - Prob. 41MC Ch. 6 - Prob. 42E Ch. 6 - Prob. 43E Ch. 6 - Prob. 44E Ch. 6 - Prob. 45E Ch. 6 - Prob. 46E Ch. 6 - Prob. 47E Ch. 6 - Prob. 48E Ch. 6 - Prob. 49E Ch. 6 - Prob. 50E Ch. 6 - Prob. 51E Ch. 6 - Prob. 52E Ch. 6 - Prob. 53E Ch. 6 - Prob. 54E Ch. 6 - Prob. 55E Ch. 6 - Prob. 56E Ch. 6 - Prob. 57E Ch. 6 - Prob. 58E Ch. 6 - Prob. 59E Ch. 6 - Prob. 60E Ch. 6 - Prob. 61P Ch. 6 - Prob. 62P Ch. 6 - Prob. 63P Ch. 6 - Prob. 64P Ch. 6 - Prob. 65P Ch. 6 - Prob. 66P Ch. 6 - Prob. 67P Ch. 6 - Prob. 68P

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Mention the incentive that the reporting company will be required to qualify for its variable interest of the legal entity with respect to the exception of the business related scope in FASB ASC 810.

Mention the incentive that the reporting company will be required to qualify for its variable interest of the legal entity with respect to the exception of the business related scope in FASB ASC 810.

Mention that the reporting firm will qualify for the exception relating to the business assuming the chairman of the reporting company's board of directors has worked with an investment bank to form the legal entity.

Mention that the reporting firm will qualify for the exception relating to the business assuming the chairman of the reporting company's board of directors has worked with an investment bank to form the legal entity which is a joint venture and explain the reason for it.

Chapter 6 Solutions

Mention the incentive that the reporting company will be required to qualify for its

variable interest of the legal entity with respect to the exception of the business related

scope in FASB ASC 810.

Mention that the reporting firm will qualify for the exception relating to the business

assuming the chairman of the reporting company's board of directors has worked with

an investment bank to form the legal entity.

Mention that the reporting firm will qualify for the exception relating to the business

assuming the chairman of the reporting company's board of directors has worked with

an investment bank to form the legal entity which is a joint venture and explain the

reason for it.