Solution-What are some of the implications of allowing

What are some of the implications of allowing options

Assignment Help Accounting Basics

Reference no: EM132983784

Question - Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the share capital and reserves of Company B are:

Share capital $8 million

Retained earnings $2 million

$10 million

(a) What amount of goodwill will be shown in the consolidated statement of financial position pursuant to AASB 3 assuming that any non-controlling interest in the acquirer is measured at fair value?

(b) What amount of goodwill will be shown in the consolidated statement of financial position pursuant to AASB 3 assuming that any non-controlling interest in the acquirer is measured at the non-controlling interest's proportionate share of the acquiree's identifiable net assets?

(c) Pass the necessary consolidation journal entries and the journal entries to record the non-controlling interest if the non-controlling interest in the acquirer is measured at the non-controlling interest's proportionate share of the acquiree's identifiable net assets.

(d) What are some of the implications of allowing the group to have two options in accounting for goodwill on consolidation?

Reference no: EM132983784

Questions Cloud

What would be an experience in a job where you felt engaged : What would be an experience in a job where you felt engaged. What kinds of strategies did the company use to get you engaged and keep you engaged?

What is balance in cash after transactions are journalized : What is the balance in cash after the transactions are journalized and posted? Services worth $850 performed, 25% is paid in cash the rest will be billed.

Explain the processes of selecting judges : Explain the processes of selecting judges through the three systems: merit selection, elections, and appointment system.

What other costs think associated with type of compensation : What other costs or benefits do you think are associated with this type of compensation? What additional audit procedures do you think are most effective

What are some of the implications of allowing options : What are some of the implications of allowing the group to have two options in accounting for goodwill on consolidation

Compute what was the amount of the payment : If the company repaid the loan in a lump sum amount after two years, what was (a) the amount of the payment, and (b) the amount of interest?

How the use of databases could help in detecting kickback : Describe the type of person that is most likely to commit a large fraud. Describe how the use of databases could help in detecting kickback fraud schemes.

Determine puc reduction of the preferred and common shares : Calculate the minimum values at which the assets should be transferred to the new corporation under ITA 85. Indicate any assets that should not be transferred

How much money will be in the account : The first deposit is made today. How much money will be in the account at the end of that time period

User Account

All Pages

What are some of the implications of allowing options

Reference no: EM132983784

Reference no: EM132983784

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT