Question

Would it be possible for an entity to be required to consolidate another entity in which...

Would it be possible for an entity to be required to consolidate another entity in which it has no equity interest?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Consolidated financial statements are those financial statements which are prepared together of two or more entities. These statements includes all the affairs of both the entities which are required to be presented in the financial statements.
It can also be said that the consolidated financial statements are prepared of the parent and all its subsidiaries together as a single entity and it contains all the group of assets, liabilities, income and expenses, etc.

Now the question arises that " Would it be possible for an entity to be required to consolidate another entity in which it has no equity interest".

It can be said that it would not be possible to consolidate such entity, as for consolidation as per IFRS rules a specific interest in another entity is must required.
Iy can be in form of parent and its subsidiaries.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
When is a company not required to consolidate a subsidiary in which it holds more than...
When is a company not required to consolidate a subsidiary in which it holds more than 50% of the voting stock? A. When the subsidiary is in bankruptcy. B. When the subsidiary is a finance company. C. When the subsidiary is located in a foreign country. D. When the subsidiary is not included in the consolidated tax return.
Which would consolidate faster, soils that are normally consolidated or soils that have been compacted with...
Which would consolidate faster, soils that are normally consolidated or soils that have been compacted with a sheepsfoot roller?
when is a firm required to consolidate the financial statements of a VIE with its own...
when is a firm required to consolidate the financial statements of a VIE with its own financial Statements? a. if it can exercise financial control through its role as a primary beneficiary. b. if it can exert financial influence through its role as a non beneficiary. c. if it owns considerable shares of another company . d. whenever the government notice an attempt to defraud.
If it would reduce its average total cost, do you think that a firm should consolidate...
If it would reduce its average total cost, do you think that a firm should consolidate production by shutting down two plants and shifting production into another plant that would be expanded to increase its scale of production?
When accounting for business combinations how would you decide which entity was the acquiring entity?
When accounting for business combinations how would you decide which entity was the acquiring entity?
Assume that Clark, Eric and Emily form another entity, DNA Solutions Inc. that will operate as...
Assume that Clark, Eric and Emily form another entity, DNA Solutions Inc. that will operate as a partnership. Emily contributes $50,000 in cash for her 10% interest in the entity, Eric contributes land with an adjusted basis of $50,000 and a FMV of $200,000 and cash of $25,000 for his 45% interest and Clark contributes equipment with an adjusted basis of $100,000 and a FMV of $200,000 and cash of $25,000 for his 45% interest. DNA Solutions also borrowed a...
Assume that Clark, Eric and Emily form another entity, DNA Solutions Inc. that will operate as...
Assume that Clark, Eric and Emily form another entity, DNA Solutions Inc. that will operate as a partnership. Emily contributes $50,000 in cash for her 10% interest in the entity, Eric contributes land with an adjusted basis of $50,000 and a FMV of $200,000 and cash of $25,000 for his 45% interest and Clark contributes equipment with an adjusted basis of $100,000 and a FMV of $200,000 and cash of $25,000 for his 45% interest. DNA Solutions also borrowed a...
AB is a private not-for-profit entity. It acquires YZ, another private not-for-profit entity. The acquisition value...
AB is a private not-for-profit entity. It acquires YZ, another private not-for-profit entity. The acquisition value is $0.97 million. YZ has net assets with a book value of $576,000 but a fair value of $673,000. Officials for AB expect that YZ will be predominantly supported by contributions in the future. After the acquisition, what amount of goodwill will be reported on the combined balance sheet? Multiple Choice a. $0 b. $97,000 c. $394,000 d. $297,000
Which of the following does not accurately inform about a variable interest entity (VIE)? Multiple Choice...
Which of the following does not accurately inform about a variable interest entity (VIE)? Multiple Choice A variable interest entity may take many forms including corporations and partnerships. In pre-codification literature, a variable interest entity was referred to as a Special Purpose Entity. The power to direct the activities of the VIE that most significantly impact the VIE’s eco­nomic performance is the definition of a controlling financial interest. There are 2 criteria for determining if a company has a controlling...
n Where a liability is held as a corresponding asset by another entity, the fair value...
n Where a liability is held as a corresponding asset by another entity, the fair value of the liability is determined from the perspective of a market participant that: Group of answer choices applies a present value technique to measure the liability. applies the cost approach to valuing the liability. calculates the amount required to settle the present obligation. holds the identical item as an asset at measurement date.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT