Question
Describing the rules for when to use the equity method, cost method, fair value method, and consolidation for accounting for investments in other companies (Ch.
Describing the rules for when to use the equity method, cost method, fair value method, and consolidation for accounting for investments in other companies (Ch. 1)
Creating journal entries that would be used under the cost, fair value and equity methods for various transactions or events, such as intercompany dividends, or comparing verbally how the two methods treat these events.
Computing excess valuation entries under the equity method
Computing the proper allocation of purchase price as of the date of acquisition, and creating appropriate journal entries to reflect this, whether the subsidiary is dissolved or stays in existence (Chapter 2)
Explaining why GAAP requires consolidation accounting, and explaining what is meant by control
Explaining how the following are treated during an acquisition cash paid to sellers of acquired companies; shares issued to make the deal; share issuance costs; legal fees and other acquisition costs; contingent consideration to sellers
Explain the differences between the equity method, the partial equity method, and the initial value methods of accounting for subsidiaries.
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