What is a minority interest

Reference no: EM131340700

(a) A consolidated income statement will show higher net profit than the parent-company-only income statement when both the parent and subsidiary have disclosed net profits in their respective income statements. Do you agree? Why?

(b) Goodwill is the excess of purchase price over the book values of the individual assets acquired. Do you agree? Why?

(c) What is a minority interest? Why do minority interests arise in connection with consolidated financial statements, but not with investments in associated companies?

Reference no: EM131340700

Questions Cloud

Determine whether a parent subsidiary relationship exists : What criterion is used to determine whether a parent-subsidiary relationship exists? - Why have a subsidiary or subsidiaries?

Operations and implement strategic initiatives : The resources needed to support operations and implement strategic initiatives can far surpass those available. What is the role of the board in establishing organizational priorities? How do you know which winning ideas are worth pursuing now? Ho..

Support operations and implement strategic initiatives : The resources needed to support operations and implement strategic initiatives can far surpass those available. What is the role of the board in establishing organizational priorities? How do you know which winning ideas are worth pursuing now?

What are the two approaches to cost of capital : What are the two approaches to cost of capital. What product would you suggest that an American company introduce into China based on the current situation and the change to a “two-child” policy? Explain why direct financing transactions are more cos..

What is a minority interest : A consolidated income statement will show higher net profit than the parent-company-only income statement when both the parent and subsidiary have disclosed net profits in their respective income statements. Do you agree? Why?

Minor league baseball club is considering expansion : The Hannibal Homers minor league baseball club is considering an expansion of its stadium to increase capacity by 2,000 seats. Management estimates increased revenue from ticket and concession sales to be $600,000 per year for the next 5 years. If th..

What style of conflict handling would work best for you : Taking it further, what style of conflict handling would work best for you to use in negotiating a price for this house?

Determine and comment on the consolidation adjustments : Determine and comment on the consolidation adjustments that would be needed to prepare the consolidated financial statements.

Addressing challenges that arise in strategic-planning : No matter what your role is in an organization, you will most likely attend a significant number of meetings. For strategic planning in particular, meetings are an essential part of each phase of the process. What challenges have you noticed in th..

User Account

All Pages