Parent company theory is one of the two prominent theories of consolidation Required Under parent company theory, a How would the value of goodwill be determined Explain why b How would the initial value of noncontrolling interest be determined Explain why c How would a company report noncontrollin...

a Parent company theory views the assets and liabilities of the consolidated entity as belonging to the owners not to the entity In addition parent company theorists believe that consolidated financia ...

Parent company theory is one of the two prominent theories of consolidation. Required: Under parent company theory,

Question:

Parent company theory is one of the two prominent theories of consolidation.

Required:
Under parent company theory,
a. How would the value of be determined? Explain why.
b. How would the initial value of noncontrolling interest be determined? Explain why.
c. How would a company report noncontrolling interest income in the ? Explain why.
d. Where would a company report noncontrolling interest in the consolidated balance sheet? Explain why. Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Consolidated Income Statement
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...