Discuss whether the equity method should be viewed as a form of consolidation or a valuation technique.

Question:

Discuss whether the equity method should be viewed as a form of consolidation or a valuation technique. Discuss.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Applying International Financial Reporting Standards

ISBN: 978-0730302124

3rd edition

Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise

See More Books

Question Posted: Apr 30, 2016 01:13 PM

See More Questions

What criteria would be used to determine whether the equity method should be used to account for a particular investment?
Hil Company purchased 10,000 common shares (10%) of Ton Inc. on January 1, Year 4, for $345,000, when Ton's shareholders' equity was $2,600,000, and it classified the investment as a FVTPL security....
Multiple Choice Questions 1. The percentage of interest (a) Is used to define the dependency link (b) Is used to decide about the inclusion of a company in the consolidation scope (c) Reflects the...
How does ESMA support national regulators in enforcing the application of IFRS?
Assume that Old Harbor reported the following summarized data at December 31, 2012. Accounts appear in no particular order; dollar amounts are in millions. Prepare the trial balance of Old Harbor at...
Ask individuals to identify which factors from this list they believe to be the key drivers of the organizations performance over a specified time periodsay, five years.
Q5 How can human safeguards protect against security threats?
Bill Joyner is evaluating a new ticketing system for his theater. The system will cost $225,000 and will save the theater $57,275 in annual cash operating costs. Bill expects the new system to last...
Estimating the cost of capital You were a portfolio manager in a mutual fund firm. On July 10 th in 2001, you were asked to evaluate Nike, Inc. Nikes stock price had declined recently, which may...
The 20-kg wheel has an eccentric mass which places the center of mass G a distance r = 70 mm away from the geometric center O. A constant couple M = 6 N m is applied to the initially stationary...
Compare the accounting for the effects of inter-entity transactions for transactions between parent entities and subsidiaries and between investors and associates/joint ventures.
Explain why equity accounting is sometimes referred to as 'one-line consolidation'.
At the end of May, Bergan Company had completed Jobs 200 and 305. Job 200 is for 2,390 units, and Job 305 is for 2,053 units. Using the data from BE 2-1, BE 2-2, and BE 2-4, determine (A) The balance...
From Hoffman, what are the symptoms of autism and ADHD? From the Mayo Clinic, what are the causes and risk factors for autism and ADHD? What are treatment options for these disorders? Hofmann, S. G....
Brooks, a participant in the Zappa retirement plan, has requested a second plan loan. His vested account balance is $80,000. Brooks borrowed $27,000 eight months ago and still owes $18,000 on that...
Suppose that Angelina and Brad own the only two professional photography stores in town. Each must choose between a low price and a high price for senior photo packages. The annual economic profit...
based on the article How Chili's Is Prepping for Tough Times, Starting With the Fries by Heather Haddon. What is corporate social responsibility, and what is one way that Chili's can better pursue...
QUESTION 2 (20 marks) CLO 5 a. Explain what the following ratios indicate to a firm: (i) Acid Test Ratio (ii) Return on Capital Employed (ROCE) (iii) Debtors Collection Period (iv) Working Capital (2...
Why does heating a solution increase the rate of dissolving of a solid solute in water?
The following processes constitute the air-standard Diesel cycle: 12: isentropic compression,23: constant-volume energy addition (T and P increase),34: constant-pressure energy addition (v...
a. 1. How many shares of common stock had been issued as of December 31, 2010? 2. How many shares of common stock were outstanding as of December 31, 2010? 3. What share number is used to compute...
The Wall Street Journal Digital Network Tuesday, May 10, 2011 by Matt Phillips and Randall Smith Citigroup Inc. became a $ 40 stock for the first time since late 2007, as its share price appeared to...
1. Abercrombie & Fitch Co. ( 52- week fiscal year ended January 29, 2011; 52- week fiscal year ended January 30, 2010; 52- week fiscal year ended January 31, 2009) Abercrombie & Fitch Co . is a...
What is the duration for the following bond with annual payments? 5.6300 5.7957 4.9894 5.1910 5.3806
DOLLAR TREE GROCERY OUTLET Short-Term Liquidity 2021 2022 2021 2022 Current Ratio 1.35 1.51 1.86 1.67 Quick Ratio 0.24 0.15 0.63 0.42 Cash Ratio Cash Conversion Cycle 34.78 45.75 19.41 21.61 Days...
A family has a $117,443, 25-year mortgage at 5.4% compounded monthly. (A) Find the monthly payment and the total interest paid. (B) Suppose the family decides to add an extra $100 to its mortgage...

Discuss whether the equity method should be viewed as a form of consolidation or a valuation technique.

Question:

Step by Step Answer:

IAS 28 does not give a clear indication whether the equity method is a consolidation technique or a ...View the full answer

Applying International Financial Reporting Standards

Students also viewed these Accounting questions