Subsidiary company exclusion features, Financial Accounting

Assignment Help:

Subsidiary company exclusion features

1) The standard does not require consolidation of a subsidiary acquired when there is evidence that the control is intended to be temporary.  However there must be evidence that the subsidiary is acquired with the intention to dispose of it within twelve months and that management is actively seeking a buyer. When a subsidiary previously excluded from consolidated is not disposed of within twelve months it must be consolidated as from the date of acquisition unless narrowly specified circumstances apply.

2) An entity is not permitted to exclude from consolidated an entity it continues to control simply because that entity is operating under severe long-term restrictions that significantly impair its ability to transfer funds to the parent. Control must be lost for exclusion to occur.

3) A subsidiary is not excluded from consolidated simply because the investor is a venture capital organization, mutual fund, unit trust or similar entity.

4) A subsidiary is not excluded from consolidated because its business activities are dissimilar from those of the other entities within the group. Relevant information is provided by consolidating such subsidiaries and disclosing additional information in the consolidated financial statements about the different business activities of subsidiaries. For example, the disclosure required by IAS 14 (segment reporting) help to explain the significance of different business activities within the group.


Related Discussions:- Subsidiary company exclusion features

Find the expected time a person will spend, A new shopping mall is consider...

A new shopping mall is considering setting up an information desk staffed by one (1) employee. Based upon information obtained from similar information desks, it is believed that p

Prepare the income statement and balance sheet, Below is the Trial Balance ...

Below is the Trial Balance for Clay Employment Services, year ending December 31, 2011.  Previous period's information were as follows: net receivables, $290,000 and inventory, $82

What is the after-tax cash flow from the salvage value, Morgado Inc. has pr...

Morgado Inc. has provided the following data to be used in evaluating a proposed investment project: Initial investment $130,000 Annual cash receipts $78,000 Life of the p

Leslie, My trial balance is off by $304 and I can''t find my error

My trial balance is off by $304 and I can''t find my error

Prepare general journal entries, Assessment Criteria: Student work will ...

Assessment Criteria: Student work will generally be assessed in terms of the following criteria: 1. Preparation of correct journal entries. 2. Accumulation of journal entr

Course Project writing notes for a fictitious annual report, Do you anyone ...

Do you anyone on staff with the above experience? Notes cannot be copied from any real company''s financial report.

Calculate the capital investment - time value money, Q. The capital invest...

Q. The capital investment appraisal techniques such as NPV, IRR, ARR, PV and Time value of money have become irrelevant post Celtic Tiger. Due to the depth of the recession comp

Compute average annual interest rate, Notice an Rs.50, 000 investment in a ...

Notice an Rs.50, 000 investment in a one year fixed deposit and rolled over yearly for the subsequently two years.  The interest rate for the primary year is 5 percent  yearly and

Which depreciation method would produce the higher npv, Wendy is evaluating...

Wendy is evaluating a capital budgeting project that should last for 4 years. The project requires $ 800,000 of equipment. She is unsure what depreciation method to use in her anal

Write Your Message!

Captcha
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