Using the financial statements of your company (or companies) addresses the following questions:

• What GAAP principles govern the consolidation of financial statements?
• Howare consolidated and equity methods of accounting different?
• What investments has the company made in affiliated companies? Examine its footnotes.
• Comment on the accounting for investments in affiliated companies after looking at the footnotes.
• List the investments it has.
• Does it use cost basis or equity method of accounting, or both?
• When do you use the equity method of accounting?
• Goodwillis the difference between the acquired assets and acquired liabilities.
• (Find a company that has goodwill). Examine the balance sheet and the footnotes. What is the goodwill related to?
• What FASB covers the reporting and accounting of goodwill?
• What is the difference between old goodwill reporting and new goodwill reporting?