Level of ownership-equity method

Assignment Help Accounting Basics
Reference no: EM13136823

If Coca-Cola acquires approximately 14% more of CCE, a majority of the stock will be held so that consolidation becomes a requirement. However, given the size of the present ownership and the dependence that CCE has on Coca-Cola for products and marketing, does Coca-Cola truly have no more than "the ability to exercise significant influence over the operating and financial policies" of CCE? Does the equity method fairly represent the relationship that exists? Or does Coca-Cola actually control CCE despite the level of ownership, and should consolation be required? Should the FASB reexamining the boundary between the application of the equity method and consolidation. Should the rules be rewritten so that Coca-Cola must consolidate CCE rather than use the equity method? If so, at what level of ownership would the equity method no longer be appropriate?

Reference no: EM13136823

Questions Cloud

What do think nora watson meant in her summary : what do think Nora Watson meant in her summary when she said "I think most of us are looking for a calling not a job. Most of us...have jobs that are too small for our spirit. Jobs are not big enough for people"
What are james and pete realized gains on this exchange : Each party assumed the mortgage on the building received. What are James’s and Pete’s realized gains on this exchange, respectively?
Stakeholders critical to program evaluations : What are the three major categories of stakeholders you deem as being critical to the success of your evaluation? Why were these people instrumental to your success?
How should katie treat receipt of the partnership interest : On July 1 of the current year, the unrestricted partnership interest (fair market value of $25,000) was transferred to Katie. How should Katie treat the receipt of the partnership interest in the current year?
Level of ownership-equity method : Should the rules be rewritten so that Coca-Cola must consolidate CCE rather than use the equity method? If so, at what level of ownership would the equity method no longer be appropriate?
Find weight of female using regression model output : The following output is the result of running a linear regression on WEIGHT (y) = average weight in pounds for American females. Based on this regression model output, what will be the weight of a Russian Female who is 71 inches tall?
Terrorist recruitment techniques-group dynamics : What are the benefits to a terrorist group of using suicide bombers to conduct terrorist acts? What, beyond the obvious (once a suicide bomber detonates him/herself that human weapon is no longer in the terrorist group's arsenal) are some of the d..
Should employee create a retirement portfolio : Should employee create a retirement portfolio consist of diversified investments as no-load mutual funds and exchange traded funds?
How many moles of n2 are produced : How many moles of N2 are produced by the decomposition of 1.40 of NaN3 ?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Measuring and recording pension expense

Prepare the journal entry to record pension expense and the employers' contribution to the pension plan in 2011.

  Significant disadvantage of general partnership

Which of the following is a significant disadvantage of a general partnership

  What potential ethics issues do you see in this situation

Which Statement(s) on Standards for Tax Services apply in this situation (explain how and why they apply)?

  How might a change in credit terms extend

The consolidated cash flow from operations of Jones corporation and its subsidiary short manufacturing for 2012 decreased quite substantially from 2011 despite the fact that consolidated net income increase slightly in 2012.

  Roi and residual income-missing data

The following data pertain to three divisions of Nevada Aggregates, Inc. The company's required rate of return on invested capital is 8 percent.

  Accounting records reflecting inventories

Dolan Manufacturing Company's accounting records reflect the following inventories:

  Reconcile the amount of net income to the amount of cash

Zephre Company reported net income for the year of $56,000. Depreciation expense for the year was $12,000. During the year, accounts receivable increased by $4,000, inventory decreased by $6,000, accounts payable increased by $3,000, and accrued e..

  What is an audit procedure

How does the auditor's responsibility for detecting errors differ from their responsibility to detect fraud?

  How much of loss can jon deduct on his personal income tax

On January 1, 2010, Jon purchased 50% of Waite, an S corporation, for $75,000. At the end of 2010, Waite incurred an ordinary loss of $1600. How much of the loss can Jon deduct on his personal income tax return for 2010?

  How much gross income is reported by robert

Mary is an employee of Robert's CPA business who has earned a $50,000 bonus. GR Systems pays Mary $50,000 and also issues Mary Form 1099-Misc. How much gross income is reported by Robert? By Mary?

  Strand report as total infrequent losses

In its income statement for the year, what amount should Strand report as total infrequent losses that are not considered extraordinary?

  Employers payroll taxes on the payroll

Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the employer's payroll taxes on the payroll to be paid on December 31.

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