Scenario: P Co decreases ownership interest in X Co from 95% to 70% Required Determine the amounts

Question:

Scenario: P Co decreases ownership interest in X Co from 95% to 70%

image text in transcribed

Required
Determine the amounts of the following items (if any) arising at the date of the most recent transaction in each scenario:
1. New goodwill 2. Effects that are taken to the Income Statement

(a) Remeasurement gain or loss

(b) Profit or loss on sale of investment 3. Equity effects that are not taken to the Income Statement

(a) Profit or loss arising from changes in ownership

(b) Changes in non-controlling interests

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

Step by Step Answer:

Related Book For book-img-for-question

Advanced Financial Accounting An IFRS Standards Approach

ISBN: 9781285428765

4th Edition

Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah

See More Books

Question Posted: Feb 20, 2024 02:00 AM

See More Questions

Scenario: P Co decreases ownership interest in X Co from 80% to 50% Required Determine the amounts of the following items (if any) arising at the date of the most recent transaction in each scenario:...
A solid consists of a right circular cylinder and a hemisphere with a cone cut out from the cylinder as shown below, Find the centre of gravity of the body. A solid consists of a right circular...
Consider the following alternative scenarios relating to an investor company P Cos investment in another company, known as X Co. Scenario: P Co increases ownership interest in X Co from 60% to 75%...
Consider wave-free laminar condensation on a vertical isothermal plate of length L, providing an average heat transfer coefficient of h L . If the plate is divided into N smaller plates, each of...
Find the sum of the infinite series. 1. 2. 4 10 80 10, k=1 80
If you were to use only the two risky funds, and still require an expected return of 14%, what would be the investment proportions of your portfolio? Find Proportion ( w s ), and Proportion ( w B )...
_______ is the plan of an organization and all the methods and procedures adopted by the management of an entity to achieve the objective of ensuring, as far as practicable, the orderly and efficient...
Gate City Cycles had trouble collecting its account receivable from Sue Ann Noel. On June 19, 2012, Gate City finally wrote off Noels $700 account receivable. Gate City turned the account over to an...
Data concerning Marchman Corporation's single product appear below Selling price Narable expenses Contribution margin Per Unit $120 72 $48 Percent of Sales 100% 60% 40% The company is currently...
Scenario: P Co increases ownership interest in X Co from 40% to 60% Required Determine the amounts of the following items (if any) arising at the date of the most recent transaction in each scenario:...
P acquired S in two successive purchases resulting in control on 31 December 20x0. Details of the purchases and other information relating to S are shown below: Book value of net identifiable assets...
The net income for Sterling Engineering Co. for 1998 was $\$ 280,000$. For 1998 depreciation on plant assets was $\$ 60,000$, and the company incurred a loss on sale of plant assets of \(\$...
Solve (c) 8 WI n=1 5 cos n N5
- Pierce Company reported net income of $160,000 with income tax expense of $19,000 for 2020. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the...
ABC Company had the following results as of 12/31/2020: ABC's hurdle rate is 10% CONTROLLABLE REVENUE CONTROLLABLE COST CONTROLLABLE ASSETS CONTROLLABLE INCOME 21. What is the division's margin? A....
A gray kangaroo can bound across a flat stretch of ground with each jump carrying it 10 m from the takeoff point. If the kangaroo leaves the ground at a 20 angle, what are its (a) takeoff speed and...
Since 1900, many new theories in physics have changed the way that physicists view the world. Create a presentation that will explain to middle school students why Quantum Mechanics is important, how...
Solid phosphorus pentabromide, PBr5, has been shown to have the ionic structure [PBr4+][Br]. Write the electron-dot formula of the PBr4+ cation.
For the following exercises, find the inverse of the function and graph both the function and its inverse. f(x) = 4 x 2 , x 0
Select the most appropriate answer for each of the following questions. 1. Goodwill is a. Seldom reported because it is too difficult to measure. b. Reported when more than book value is paid in...
Select the most appropriate answer for each of the following questions. 1. Goodwill is a. Seldom reported because it is too difficult to measure. b. Reported when more than book value is paid in...
Select the most appropriate answer for each of the following questions. 1. Goodwill is a. Seldom reported because it is too difficult to measure. b. Reported when more than book value is paid in...
essential con Example 15: Mr. Sunil Mukharjee has estimated probable under different macroeconomic conditions for the following three stocks: Stock Current Price (Rs.) Rates of return (%) during...
ABC Corporation has an activity - based costing system with three activity cost pools - Machining, Setting Up , and Other. The company's overhead costs, which consist of equipment depreciation and...
Consolidated Balance Sheets - USD ( $ ) $ in Thousands Dec. 3 1 , 2 0 2 3 Dec. 3 1 , 2 0 2 2 Current assets: Cash and cash equivalents $ 9 8 , 5 0 0 $ 6 3 , 7 6 9 Restricted cash 2 , 5 3 2 Short -...

Scenario: P Co decreases ownership interest in X Co from 95% to 70% Required Determine the amounts

Question:

Details Purchase of initial investment of 95% interest in X Co on 1 December 2010 Fair value of consideration transferred. Fair value of non-controlling interests. Ownership interest 95% 5% Amount $29,000,000 1,500,000

Step by Step Answer:

Answer New Goodwill New Goodwill 29000000 12800000 70 27300000 16200000 19110000 2910000 Negative va...View the full answer

Advanced Financial Accounting An IFRS Standards Approach

Students also viewed these Business questions