Which method must be used if ASC 810-10-65 prohibits fullconsolidation of a 70% owned...

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Accounting

Which method must be used if ASC 810-10-65 prohibits fullconsolidation of a 70% owned subsidiary?
Select one:
a. Equity method
b. The Liquidation value
c. Market value
d. The cost method
Subsequent to an acquisition, the parent company andconsolidated financial statement amounts would not be the samefor
Select one:
a. ending retained earnings.
b. investments in consolidated subsidiaries.
c. investments in unconsolidated subsidiaries.
d. capital stock.
Push-down accounting
Select one:
a. is the process of recording the effects of the purchase priceassignment directly on the books of the subsidiary.
b. requires a subsidiary to use the same accounting principlesas its parent company.
c. is required when the parent company uses the cost method toaccount for its investment in a subsidiary.
d. is required when the parent company uses the equity method toaccount for its investment in a subsidiary.
IFRS defines control as
Select one:
a. having a majority of the ownership interests entitled toelect management.
b. the power to direct the activities that impact economicperformance, the obligation to absorb expected losses, and theright to receive expected residual returns.
c. the power to govern the entity’s financial and operatingpolicies as to obtain benefits from its activities.
d. the direct or indirect ability to determine the direction ofmanagement and policies through ownership, contract, orotherwise.

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4.2 Ratings (812 Votes)

a Equity method must be used if ASC 8101065 prohibits full consolidation of a 70 owned subsidiary The companies ues equity method in the above mentioned case Subsequent to an acquisition the parent company and consolidated financial statement amounts would not be the same for b investments in consolidated subsidiaries There are different entries in the books of consolidated statement and parent comapny for such cases Pushdown accounting a is the process of recording the effects of the purchase price assignment directly on the books of See Answer

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In: AccountingWhich method must be used if ASC 810-10-65 prohibits fullconsolidation of a 70% owned subsidiary?...Which method must be used if ASC 810-10-65 prohibits fullconsolidation of a 70% owned subsidiary?Select one:a. Equity methodb. The Liquidation valuec. Market valued. The cost methodSubsequent to an acquisition, the parent company andconsolidated financial statement amounts would not be the sameforSelect one:a. ending retained earnings.b. investments in consolidated subsidiaries.c. investments in unconsolidated subsidiaries.d. capital stock.Push-down accountingSelect one:a. is the process of recording the effects of the purchase priceassignment directly on the books of the subsidiary.b. requires a subsidiary to use the same accounting principlesas its parent company.c. is required when the parent company uses the cost method toaccount for its investment in a subsidiary.d. is required when the parent company uses the equity method toaccount for its investment in a subsidiary.IFRS defines control asSelect one:a. having a majority of the ownership interests entitled toelect management.b. the power to direct the activities that impact economicperformance, the obligation to absorb expected losses, and theright to receive expected residual returns.c. the power to govern the entity’s financial and operatingpolicies as to obtain benefits from its activities.d. the direct or indirect ability to determine the direction ofmanagement and policies through ownership, contract, orotherwise.