Equity accounts remain in existence indefinitely

Assignment Help Business Management
Reference no: EM131797553

Accounting for assets and liabilities Mensa Ltd has acquired all the shares of Cancer Ltd. The accountant for Mensa Ltd, having studied the requirements of AASB 3 Business Combinations, realises that all the identifiable assets and liabilities of Cancer Ltd must be recognised in the consolidated financial statements at fair value. Although he is happy about the valuation of these items, he is unsure of a number of other matters associated with accounting for these assets and liabilities. He has approached you and asked for your advice.

Required:

Do these equity accounts remain in existence indefinitely, since they do not seem to be related to the equity accounts recognised by Cancer Ltd itself?

Reference no: EM131797553

Questions Cloud

Prepare a revised balance sheet given available information : Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $168,000.
What is the duration and modified duration : Compute the duration and modified duration of each bond, assuming semi-annual interest payments for the coupon bond.
Difference between a stock dividend and stock split : What is the difference between a stock dividend and stock split? Please explain.
How much of the sherry include in income : Sherry just received her $15,000 payment for 2011. How much of the $15,000 must Sherry include in income
Equity accounts remain in existence indefinitely : Do these equity accounts remain in existence indefinitely, since they do not seem to be related to the equity accounts recognised by Cancer Ltd itself?
Determine the corrected amounts for cost of goods sold : Determine the corrected amounts for 2017 cost of goods sold and December 31
Learning of organisational behaviour : How has the learning of Organisational Behaviour impacted on your thinking, behaviour and approaches both as an individual and as a team member?
What is the company return on equity ratio : The company has total assets of $500,000 and total liabilities of $100,000. What is the company's return on equity ratio
What is the inference of the test at a 1% level : Construct the relevant hypotheses to test if the mean of the second population is greater than the mean of the first population.

Reviews

Write a Review

 

Business Management Questions & Answers

  Administered a cognitive ability test

Applicants for patrol officer positions with the city of Fort Worth, Texas, are administered a cognitive ability test. The average score on the test is 70.

  Abundance of phytoplankton

A large number of fish are suddenly found floating dead on a lake. You are called in to investigate the problem. You find an abundance of phytoplankton and no evidence of toxic dumping. Suggest a reason for the fish kill.

  Which best represents a multicultural organization

Which of the following BEST represents a multicultural organization? For which of the following characteristics must employers make reasonable accommodations?

  What does a business have to consider when trying to follow

What does a business have to consider when trying to follow a cost leadership strategy and a differentiation strategy simultaneously?

  Leadership and personality traits does bill gates possess

What leadership and personality traits does Bill Gates possess? How have they enabled him to be successful?

  Strategic plan in the process of financial management

What role does a company's strategic plan play in the process of financial management? Does it ever make sense for a profitable company.

  Identify techniques that will help you meet your career goal

What can you do to increase your chances by creating a leadership presence? Explain what is meant by the term and identify techniques that will help you meet your career goals?

  Understanding of purpose of part h of reiq appointment

Explain your understanding of the purpose of Part H of the REIQ Appointment of Real Estate Agent (Residential Sales) items schedule, which is used with the property occupations form 6 as best practice.

  Find the prefered bundle

For each utility function find the prefered bundle between X=(4 cloth,3pen) and Y=(5 cloth,10pen). Whether X is preferred to Y or Y is preffered.

  Distinct part in the decision making process

Below are scenarios in which critical thinking plays a distinct part in the decision making process. Read all three, then select one that offers you a challenge

  How your findings from first and second tasks affect uber

Your second task is to examine the laws that either support or limit the operations by Uber. Your third task is to analyze how your findings from your first and second tasks affect Uber.

  Official in the reagan and bush administrations

Here's an excellent article written by a former official in the Reagan and Bush administrations.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd