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Chapter 8 : Accounting for the acquisition of an investment Accounting for investments subsequent to purchase . Which method to use depending on the percentage
Chapter 8 : Accounting for the acquisition of an investment Accounting for investments subsequent to purchase . Which method to use depending on the percentage of ownership of an investment ( fair value , equity or consolidation ) Journalize the adjustment required for available for sale investments at year- end including using an Allowance accoun For available for sale securities in which financial statements are the different sources of income items ( dividends , calized gains / losses , unrealized gains / losses ) included Understand and journalize what happens to the investment account when we use the equity method For bond investments , how to calculate the balance of the bond investment using straight line amortization of the premium or discount , and the resulting interest revenue after amortizing the premium or discount When do you issue consolidated financial statements Be familiar with basic present value concepts and computation ( you will not need the PV tables )
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