What advantages does the consolidated statement have

Assignment Help Accounting Basics

Reference no: EM131822693

Question: General Electric and GECS The consolidated financial statements of General Electric (GE) include the results of General Electric Capital Services (GECS) , its 100%-owned financial services subsidiary. Some investors think the business of a financial services subsidiary is so different from that of its parent that the two should not be consolidated. In 2011, GE reported consolidated net income of $14,443 million, and GECS reported net income of $6,637 million.

1. What would be the 2011 net income of GE if it did not consolidate GECS but accounted for it on an equity basis?

2. What would GE's 2011 net income be if it did not own GECS but all other results were as reported? What percentage of GE's net income comes from GECS?

3. What advantages does the consolidated statement have? What advantages does the unconsolidated statement that accounts for GECS on an equity basis have?

Reference no: EM131822693

Questions Cloud

Which frequencies have wavelengths that match : One of the most renowned concert halls in the world, the Amsterdam Concertgebouw, is rectangular in shape with dimensions of 30.4 meters by 20.4 meters

What are the ethical implications in writing a literature : What are the ethical implications in writing a literature review or a research report? Explain your response by illustrating specific examples.

Create your flowchart and export the drawing as a jpg : You may use Microsoft Visio to create your flowchart and export the drawing as a JPG. Paste your image in your Word document with your pseudo code.

Write two one-tailed hypotheses that relate two variables : Write two one-tailed hypotheses that relate two variables that you have an interest in exploring. Provide descriptions of the other three research methods .

What advantages does the consolidated statement have : What advantages does the consolidated statement have? What advantages does the unconsolidated statement that accounts for GECS on an equity basis have?

?nd the components of vector : The scalar product oftwo vectors ii and B; in the x-y plane is? ' E = '19 . Ifthe vector 3 is (-7.0, '4.0) and the direction of vector E is 30 from the x axis

Find the value of identifiable intangible assets : Why might a manager want this $29.7 billion to be recorded as goodwill rather than as part of the value of identifiable intangible assets?

Explain any procedures related to reporting abuse : Explain any procedures related to reporting abuse, duty to warn, or victims' rights.Changes to the tests and assessments you would like to see.

Find the current flowing through the resistor : Find the current flowing through the resistor. (Show your work and label the direction the current is flowing in your diagram)

User Account

All Pages